Beach Energy (OTCMKTS:BCHEY) & Kosmos Energy (NYSE:KOS) Head-To-Head Comparison

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

Earnings and Valuation

This table compares Beach Energy and Kosmos Energy”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Beach Energy	$1.18 billion	1.68	-$311.70 million	N/A	N/A
Kosmos Energy	$1.68 billion	0.56	$189.85 million	($0.03)	-65.83

Kosmos Energy has higher revenue and earnings than Beach Energy.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Beach Energy and Kosmos Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Beach Energy	1	1	0	0	1.50
Kosmos Energy	0	3	3	0	2.50

Kosmos Energy has a consensus price target of $4.93, suggesting a potential upside of 149.79%. Given Kosmos Energy’s stronger consensus rating and higher probable upside, analysts clearly believe Kosmos Energy is more favorable than Beach Energy.

Insider & Institutional Ownership

95.3% of Kosmos Energy shares are held by institutional investors. 2.0% of Kosmos Energy shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Beach Energy and Kosmos Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Beach Energy	N/A	N/A	N/A
Kosmos Energy	-0.80%	-0.63%	-0.14%

Volatility and Risk

Beach Energy has a beta of 0.59, indicating that its share price is 41% less volatile than the S&P 500. Comparatively, Kosmos Energy has a beta of 1.44, indicating that its share price is 44% more volatile than the S&P 500.

Summary

Kosmos Energy beats Beach Energy on 8 of the 12 factors compared between the two stocks.

About Beach Energy

Beach Energy Limited operates as an oil and gas exploration and production company. It engages in the operated and non-operated, onshore and offshore, and oil and gas production in five producing basins across Australia and New Zealand. The company also explores, develops, produces, and transports hydrocarbons; and sells gas and liquid hydrocarbons. The company was formerly known as Beach Petroleum Limited and changed its name to Beach Energy Limited in December 2009. The company was incorporated in 1961 and is headquartered in Adelaide, Australia.

About Kosmos Energy

Kosmos Energy Ltd., together with its subsidiaries, engages in the exploration, development, and production of oil and gas along the Atlantic Margins in the United States. The company’s primary assets include production projects located in offshore Ghana, Equatorial Guinea, and the U.S. Gulf of Mexico, as well as gas projects located in offshore Mauritania and Senegal. It undertakes a proven basin exploration program in Equatorial Guinea and the U.S. Gulf of Mexico. Kosmos Energy Ltd. was founded in 2003 and is headquartered in Dallas, Texas.