Reviewing PDC Energy (NASDAQ:PDCE) and Callon Petroleum (NASDAQ:CPE)

PDC Energy (NASDAQ:PDCE) and Callon Petroleum (NYSE:CPE) are both small-cap oils/energy companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, profitability, earnings, analyst recommendations, valuation, institutional ownership and risk.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for PDC Energy and Callon Petroleum, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PDC Energy 0 3 18 0 2.86
Callon Petroleum 0 5 12 0 2.71

PDC Energy presently has a consensus price target of $50.06, suggesting a potential upside of 96.00%. Callon Petroleum has a consensus price target of $9.95, suggesting a potential upside of 119.08%. Given Callon Petroleum’s higher probable upside, analysts plainly believe Callon Petroleum is more favorable than PDC Energy.

Profitability

This table compares PDC Energy and Callon Petroleum’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PDC Energy 7.73% -3.08% -1.63%
Callon Petroleum 38.86% 7.48% 4.59%

Valuation and Earnings

This table compares PDC Energy and Callon Petroleum’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PDC Energy $1.55 billion 1.03 $2.02 million ($2.96) -8.63
Callon Petroleum $587.62 million 1.76 $300.36 million $0.82 5.54

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

Volatility & Risk

PDC Energy has a beta of 0.93, suggesting that its stock price is 7% less volatile than the S&P 500. Comparatively, Callon Petroleum has a beta of 1.46, suggesting that its stock price is 46% more volatile than the S&P 500.

Summary

Callon Petroleum beats PDC Energy on 9 of the 12 factors compared between the two stocks.

PDC Energy Company Profile

PDC Energy, Inc., an independent exploration and production company, acquires, explores for, develops, and produces crude oil, natural gas, and natural gas liquids in the United States. Its operations are primarily located in the Wattenberg Field in Colorado and the Delaware Basin in Texas. The company was formerly known as Petroleum Development Corporation and changed its name to PDC Energy, Inc. in June 2012. PDC Energy, Inc. was founded in 1969 and is headquartered in Denver, Colorado.

Callon Petroleum Company Profile

Callon Petroleum Company, an independent oil and natural gas company, focuses on the acquisition, development, exploration, and exploitation of unconventional onshore oil and natural gas reserves in the Permian Basin in West Texas and southeastern New Mexico. As of December 31, 2018, its estimated net proved reserves totaled 238.5 million barrel of oil equivalent, including 180.1 MMBbls of oil and 350.5 Bcf of natural gas. The company was founded in 1950 and is headquartered in Houston, Texas.

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