Contrasting Eclipse Resources (ECR) and SilverBow Resources (NYSE:SBOW)

SilverBow Resources (NYSE: ECR) and Eclipse Resources (NYSE:ECR) are both small-cap oils/energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, risk and profitability.

Profitability

This table compares SilverBow Resources and Eclipse Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SilverBow Resources 23.04% 24.31% 8.52%
Eclipse Resources -12.57% 0.53% 0.25%

Analyst Recommendations

This is a summary of recent recommendations and price targets for SilverBow Resources and Eclipse Resources, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SilverBow Resources 0 0 4 0 3.00
Eclipse Resources 1 4 6 0 2.45

SilverBow Resources currently has a consensus price target of $33.00, indicating a potential upside of 6.93%. Eclipse Resources has a consensus price target of $2.49, indicating a potential upside of 73.95%. Given Eclipse Resources’ higher probable upside, analysts clearly believe Eclipse Resources is more favorable than SilverBow Resources.

Volatility and Risk

SilverBow Resources has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500. Comparatively, Eclipse Resources has a beta of 2.89, suggesting that its share price is 189% more volatile than the S&P 500.

Institutional and Insider Ownership

82.7% of SilverBow Resources shares are held by institutional investors. Comparatively, 78.9% of Eclipse Resources shares are held by institutional investors. 2.4% of SilverBow Resources shares are held by insiders. Comparatively, 1.1% of Eclipse Resources shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares SilverBow Resources and Eclipse Resources’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SilverBow Resources $195.91 million 1.84 $71.97 million $6.08 5.08
Eclipse Resources $383.66 million 1.13 $8.52 million ($0.04) -35.75

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

Summary

SilverBow Resources beats Eclipse Resources on 10 of the 14 factors compared between the two stocks.

SilverBow Resources Company Profile

SilverBow Resources, Inc., an energy company, engages in the exploration, development, and production of oil and gas from the Eagle Ford Shale in South Texas. As of December 31, 2017, it had proved reserves of 1.0 trillion cubic feet equivalent. The company was formerly known as Swift Energy Company and changed its name to SilverBow Resources, Inc. in May 2017. SilverBow Resources, Inc. was founded in 1979 and is headquartered in Houston, Texas.

Eclipse Resources Company Profile

Eclipse Resources Corporation, an independent exploration and production company, acquires and develops oil and natural gas properties in the Appalachian Basin. The company holds interests in the Utica Shale and Marcellus Shale areas. As of December 31, 2017, it had an acreage position approximately covering an area of 203,000 net acres in Eastern Ohio. The company's estimated proved reserves were 1,458.6 billion cubic feet of natural gas equivalent. Eclipse Resources Corporation was founded in 2011 and is headquartered in State College, Pennsylvania.

Receive News & Ratings for SilverBow Resources Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for SilverBow Resources and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply