Head-To-Head Analysis: SandRidge Energy (NYSE:SD) vs. Tourmaline Oil (OTCMKTS:TRMLF)

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

Earnings and Valuation

This table compares Tourmaline Oil and SandRidge Energy”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tourmaline Oil	$4.72 billion	3.69	$187.99 million	$0.72	62.25
SandRidge Energy	$180.12 million	3.06	$70.20 million	$2.24	6.64

Tourmaline Oil has higher revenue and earnings than SandRidge Energy. SandRidge Energy is trading at a lower price-to-earnings ratio than Tourmaline Oil, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tourmaline Oil	6.05%	9.05%	6.25%
SandRidge Energy	46.06%	13.62%	10.93%

Risk and Volatility

Tourmaline Oil has a beta of -0.24, indicating that its share price is 124% less volatile than the S&P 500. Comparatively, SandRidge Energy has a beta of 0.48, indicating that its share price is 52% less volatile than the S&P 500.

Institutional and Insider Ownership

1.8% of Tourmaline Oil shares are owned by institutional investors. Comparatively, 61.8% of SandRidge Energy shares are owned by institutional investors. 1.6% of SandRidge Energy shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Dividends

Tourmaline Oil pays an annual dividend of $1.45 per share and has a dividend yield of 3.2%. SandRidge Energy pays an annual dividend of $0.52 per share and has a dividend yield of 3.5%. Tourmaline Oil pays out 201.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. SandRidge Energy pays out 23.2% of its earnings in the form of a dividend. SandRidge Energy has raised its dividend for 2 consecutive years. SandRidge Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a summary of recent recommendations for Tourmaline Oil and SandRidge Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tourmaline Oil	0	6	4	1	2.55
SandRidge Energy	0	2	0	0	2.00

Tourmaline Oil presently has a consensus price target of $65.00, indicating a potential upside of 45.02%. Given Tourmaline Oil’s stronger consensus rating and higher possible upside, equities analysts clearly believe Tourmaline Oil is more favorable than SandRidge Energy.

Summary

SandRidge Energy beats Tourmaline Oil on 10 of the 18 factors compared between the two stocks.

About Tourmaline Oil

Tourmaline Oil Corp. explores for and develops oil and natural gas properties in the Western Canadian Sedimentary Basin. The company holds interests in properties located in the Alberta Deep Basin, Northeast British Columbia Montney, and the Peace River High Triassic oil complex. Tourmaline Oil Corp. was incorporated in 2008 and is headquartered in Calgary, Canada.

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.