Analyzing Anadarko Petroleum (NASDAQ:APC) & ATP Oil & Gas (OTCMKTS:ATPAQ)

ATP Oil & Gas (OTCMKTS:ATPAQ) and Anadarko Petroleum (NASDAQ:APC) are both basic materials companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, institutional ownership, risk and profitability.

Analyst Ratings

This is a breakdown of current ratings for ATP Oil & Gas and Anadarko Petroleum, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ATP Oil & Gas	0	0	0	0	0.00
Anadarko Petroleum	1	2	3	1	2.57

Anadarko Petroleum has a consensus price target of $21.60, suggesting a potential upside of 3.95%. Given Anadarko Petroleum’s stronger consensus rating and higher possible upside, analysts clearly believe Anadarko Petroleum is more favorable than ATP Oil & Gas.

Valuation and Earnings

This table compares ATP Oil & Gas and Anadarko Petroleum”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ATP Oil & Gas	N/A	N/A	N/A	N/A	N/A
Anadarko Petroleum	$5.58 billion	0.05	$615.00 million	$0.43	48.33

Anadarko Petroleum has higher revenue and earnings than ATP Oil & Gas.

Institutional & Insider Ownership

85.2% of Anadarko Petroleum shares are held by institutional investors. 0.5% of Anadarko Petroleum shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares ATP Oil & Gas and Anadarko Petroleum’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ATP Oil & Gas	N/A	N/A	N/A
Anadarko Petroleum	-4.20%	10.49%	2.68%

Summary

Anadarko Petroleum beats ATP Oil & Gas on 9 of the 10 factors compared between the two stocks.

About ATP Oil & Gas

ATP Oil & Gas Corporation is engaged in the acquisition, development and production of oil and natural gas properties. As of December 31, 2011, the Company had estimated net proved reserves of 118.9 Million barrels of crude oil equivalent (MMBoe), of which approximately 75.9 MMboe (64%) were in the Gulf of Mexico and 42.9 MMBoe (36%) were in the North Sea. The reserves consisted of 78.6 Million barrels (MMBbls) of oil (66%) and 241.5 billion cubic feet (Bcf) of natural gas (34%). Its proved reserves in the deepwater area of the Gulf of Mexico account for 62% of the Company’s total proved reserves and its proved reserves on the Gulf of Mexico Outer Continental Shelf account for 2% of its total proved reserves. During the year ended December 31, 2011, it acquired three licenses in the Mediterranean Sea covering potential natural gas resources in the deepwater off the coast of Israel (East Mediterranean). On August 17, 2012, ATP Oil And Gas Corp filed for Chapter 11 bankruptcy protection.

About Anadarko Petroleum

Anadarko Petroleum Corporation engages in the exploration, development, production, and marketing of oil and gas properties. It operates through three segments: Exploration and Production, WES Midstream, and Other Midstream. The company explores for and produces oil, natural gas, and natural gas liquids (NGLs). It is also involved in gathering, processing, treating, and transporting oil, natural-gas, and NGLs production, as well as the gathering and disposal of produced water. The company's oil and natural gas properties are located in the United States onshore and deepwater Gulf of Mexico; and Algeria, Ghana, Mozambique, Colombia, Peru, and other countries. As of December 31, 2018, it had approximately 1.5 billion barrels of oil equivalent of proved reserves. The company was founded in 1959 and is headquartered in The Woodlands, Texas.