Financial Survey: Kosmos Energy (NYSE:KOS) and Amplify Energy (NYSE:AMPY)

Amplify Energy (NYSE:AMPY) and Kosmos Energy (NYSE:KOS) are both oils/energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, institutional ownership, dividends, risk, analyst recommendations, earnings and valuation.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Amplify Energy	0	0	2	0	3.00
Kosmos Energy	0	1	5	0	2.83

Amplify Energy currently has a consensus price target of $9.25, indicating a potential upside of 37.65%. Kosmos Energy has a consensus price target of $9.63, indicating a potential upside of 72.49%. Given Kosmos Energy’s higher possible upside, analysts clearly believe Kosmos Energy is more favorable than Amplify Energy.

Institutional & Insider Ownership

42.8% of Amplify Energy shares are held by institutional investors. Comparatively, 95.3% of Kosmos Energy shares are held by institutional investors. 2.0% of Amplify Energy shares are held by company insiders. Comparatively, 1.8% of Kosmos Energy shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Amplify Energy and Kosmos Energy’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Amplify Energy	$307.60 million	0.87	$392.75 million	$9.66	0.70
Kosmos Energy	$1.70 billion	1.55	$213.52 million	$0.44	12.69

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Amplify Energy	122.36%	10.50%	5.24%
Kosmos Energy	12.55%	39.94%	7.83%

Volatility and Risk

Amplify Energy has a beta of 2.02, suggesting that its share price is 102% more volatile than the S&P 500. Comparatively, Kosmos Energy has a beta of 2.36, suggesting that its share price is 136% more volatile than the S&P 500.

Summary

Kosmos Energy beats Amplify Energy on 9 of the 14 factors compared between the two stocks.

About Amplify Energy

Amplify Energy Corp., together with its subsidiaries, engages in the acquisition, development, exploitation, and production of oil and natural gas properties in the United States. The company's properties consist of operated and non-operated working interests in producing and undeveloped leasehold acreage, as well as working interests in identified producing wells located in Oklahoma, the Rockies, federal waters offshore Southern California, East Texas/North Louisiana, and Eagle Ford. The company is based in Houston, Texas.

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.