Critical Comparison: SandRidge Energy (NYSE:SD) versus Carbon Energy (OTCMKTS:CRBO)

Carbon Energy (OTCMKTS:CRBO) and SandRidge Energy (NYSE:SD) are both small-cap energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, profitability, dividends, valuation, analyst recommendations and institutional ownership.

Profitability

This table compares Carbon Energy and SandRidge Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Carbon Energy	N/A	N/A	N/A
SandRidge Energy	46.06%	13.62%	10.93%

Valuation and Earnings

This table compares Carbon Energy and SandRidge Energy”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Carbon Energy	N/A	N/A	N/A	N/A	N/A
SandRidge Energy	$156.36 million	3.32	$70.20 million	$2.24	6.25

SandRidge Energy has higher revenue and earnings than Carbon Energy.

Institutional and Insider Ownership

61.8% of SandRidge Energy shares are owned by institutional investors. 7.1% of Carbon Energy shares are owned by company insiders. Comparatively, 1.6% of SandRidge Energy shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Carbon Energy has a beta of -1.86, indicating that its stock price is 286% less volatile than the S&P 500. Comparatively, SandRidge Energy has a beta of 0.55, indicating that its stock price is 45% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Carbon Energy and SandRidge Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Carbon Energy	0	0	0	0	0.00
SandRidge Energy	0	2	0	0	2.00

Summary

SandRidge Energy beats Carbon Energy on 7 of the 8 factors compared between the two stocks.

About Carbon Energy

Carbon Energy Corporation, an independent oil and natural gas company, engages in the acquisition, exploration, development, and production of oil, natural gas, and natural gas liquids properties in the United States. It focuses on conventional and unconventional reservoirs, including shale, tight sand, and coalbed methane located in the Appalachian, Illinois, and Ventura Basins. It owns working interests and royalty interests in wells located in California, Illinois, Indiana, Kentucky, Ohio, Tennessee, Virginia, and West Virginia, as well as had leasehold positions. The company was formerly known as Carbon Natural Gas Company and changed its name to Carbon Energy Corporation in June 2018. Carbon Energy Corporation was founded in 2007 and is based in Denver, Colorado.

About SandRidge Energy

SandRidge Energy, Inc. engages in the acquisition, development, and production of oil, natural gas, and natural gas liquids in the United States Mid-Continent. The company was incorporated in 2006 and is headquartered in Oklahoma City, Oklahoma.