Head to Head Survey: Noble Energy (NYSE:NBL) and SandRidge Mississippian Trust II (NYSE:SDR)

Noble Energy (NYSE:NBL) and SandRidge Mississippian Trust II (NYSE:SDR) are both oils/energy companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, valuation and dividends.

Analyst Ratings

This is a breakdown of current ratings and target prices for Noble Energy and SandRidge Mississippian Trust II, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Noble Energy 0 4 15 0 2.79
SandRidge Mississippian Trust II 0 0 0 0 N/A

Noble Energy currently has a consensus target price of $35.20, indicating a potential upside of 63.64%. Given Noble Energy’s higher probable upside, equities research analysts clearly believe Noble Energy is more favorable than SandRidge Mississippian Trust II.

Institutional and Insider Ownership

97.9% of Noble Energy shares are held by institutional investors. Comparatively, 0.9% of SandRidge Mississippian Trust II shares are held by institutional investors. 1.8% of Noble Energy shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Risk & Volatility

Noble Energy has a beta of 1.41, indicating that its share price is 41% more volatile than the S&P 500. Comparatively, SandRidge Mississippian Trust II has a beta of 1.13, indicating that its share price is 13% more volatile than the S&P 500.

Earnings & Valuation

This table compares Noble Energy and SandRidge Mississippian Trust II’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Noble Energy $4.99 billion 2.06 -$66.00 million $0.90 23.90
SandRidge Mississippian Trust II $14.64 million 1.66 $10.32 million N/A N/A

SandRidge Mississippian Trust II has lower revenue, but higher earnings than Noble Energy.

Dividends

Noble Energy pays an annual dividend of $0.48 per share and has a dividend yield of 2.2%. SandRidge Mississippian Trust II pays an annual dividend of $0.11 per share and has a dividend yield of 22.4%. Noble Energy pays out 53.3% of its earnings in the form of a dividend.

Profitability

This table compares Noble Energy and SandRidge Mississippian Trust II’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Noble Energy -19.93% 0.87% 0.43%
SandRidge Mississippian Trust II 66.85% 21.99% 21.99%

Summary

Noble Energy beats SandRidge Mississippian Trust II on 8 of the 14 factors compared between the two stocks.

About Noble Energy

Noble Energy, Inc., an independent energy company, engages in the acquisition, exploration, development, and production of crude oil, natural gas, and natural gas liquids worldwide. The company owns, operates, develops, and acquires domestic midstream infrastructure assets in the DJ and Delaware Basins. Its principal assets are located in the US onshore unconventional basins and various global offshore conventional basins in the Eastern Mediterranean and off the west coast of Africa. As of December 31, 2018, the company had 1,929 million barrels oil equivalent of total proved reserves. Noble Energy, Inc. was founded in 1932 and is headquartered in Houston, Texas.

About SandRidge Mississippian Trust II

SandRidge Mississippian Trust II holds royalty interests in oil and natural gas properties. The company's properties are located in the Mississippian formation in Alfalfa, Grant, Kay, Noble, and Woods counties in northern Oklahoma and Barber; and Comanche, Harper, and Sumner counties in southern Kansas. As of December 31, 2018, its properties consisted of royalty interests in the initial wells and 173 additional wells. The company was founded in 2011 and is based in Houston, Texas.

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