Contrasting Kosmos Energy (NYSE:KOS) & Nostrum Oil & Gas (OTCMKTS:NSTRY)

Kosmos Energy (NYSE:KOS) and Nostrum Oil & Gas (OTCMKTS:NSTRY) are both small-cap oils/energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, risk, profitability, institutional ownership, earnings and dividends.

Insider and Institutional Ownership

95.3% of Kosmos Energy shares are owned by institutional investors. 2.0% of Kosmos Energy shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Kosmos Energy and Nostrum Oil & Gas”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kosmos Energy	$1.68 billion	0.79	$213.52 million	$0.39	7.19
Nostrum Oil & Gas	$195.29 million	1.13	-$26.12 million	($0.37)	-12.62

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

Analyst Recommendations

This is a summary of recent recommendations for Kosmos Energy and Nostrum Oil & Gas, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kosmos Energy	0	2	3	0	2.60
Nostrum Oil & Gas	0	0	0	0	0.00

Kosmos Energy currently has a consensus price target of $5.52, indicating a potential upside of 96.86%. Given Kosmos Energy’s stronger consensus rating and higher probable upside, equities analysts clearly believe Kosmos Energy is more favorable than Nostrum Oil & Gas.

Profitability

This table compares Kosmos Energy and Nostrum Oil & Gas’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kosmos Energy	12.21%	31.08%	6.53%
Nostrum Oil & Gas	-8.42%	N/A	-13.93%

Risk & Volatility

Kosmos Energy has a beta of 2.41, meaning that its stock price is 141% more volatile than the S&P 500. Comparatively, Nostrum Oil & Gas has a beta of -3118.28, meaning that its stock price is 311,928% less volatile than the S&P 500.

Summary

Kosmos Energy beats Nostrum Oil & Gas on 13 of the 14 factors compared between the two stocks.

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.

About Nostrum Oil & Gas

Nostrum Oil & Gas PLC, an independent oil and gas company, engages in the exploration, development, and production of oil and gas in the pre-Caspian Basin. The company discovers and develops oil and gas reserves, as well as produces and sells crude oil, stabilized condensate, liquefied petroleum gas, and dry gas. Its principal producing asset is 100% owned Chinarevskoye field located in North-western Kazakhstan. As of December 31, 2021, the company had proved and probable reserves of 34 million barrels of oil equivalent (mmboe) and 28 mmboe of contingent resources. Nostrum Oil & Gas PLC was founded in 1997 and is based in London, the United Kingdom.