Wildhorse Resource Development (WRD) vs. Enerplus (ERF) Financial Analysis

Enerplus (NYSE: ERF) and Wildhorse Resource Development (NYSE:WRD) 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 risk, analyst recommendations, valuation, profitability, earnings, institutional ownership and dividends.

Dividends

Enerplus pays an annual dividend of $0.09 per share and has a dividend yield of 1.1%. Wildhorse Resource Development does not pay a dividend. Enerplus pays out 2.8% of its earnings in the form of a dividend.

Profitability

This table compares Enerplus and Wildhorse Resource Development’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Enerplus 121.44% 14.21% 8.42%
Wildhorse Resource Development 8.88% 1.24% 0.68%

Earnings and Valuation

This table compares Enerplus and Wildhorse Resource Development’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Enerplus $545.68 million 3.80 $300.12 million $3.25 2.63
Wildhorse Resource Development $127.34 million 13.76 -$47.07 million $0.22 78.73

Enerplus has higher revenue and earnings than Wildhorse Resource Development. Enerplus is trading at a lower price-to-earnings ratio than Wildhorse Resource Development, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Enerplus and Wildhorse Resource Development, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Enerplus 0 0 5 0 3.00
Wildhorse Resource Development 0 1 11 1 3.00

Enerplus currently has a consensus price target of $15.00, suggesting a potential upside of 75.23%. Wildhorse Resource Development has a consensus price target of $20.82, suggesting a potential upside of 20.20%. Given Enerplus’ higher possible upside, analysts plainly believe Enerplus is more favorable than Wildhorse Resource Development.

Institutional & Insider Ownership

49.7% of Enerplus shares are owned by institutional investors. Comparatively, 95.7% of Wildhorse Resource Development shares are owned by institutional investors. 2.6% of Wildhorse Resource Development shares are owned by 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.

Summary

Enerplus beats Wildhorse Resource Development on 8 of the 15 factors compared between the two stocks.

About Enerplus

Enerplus Corporation is an oil and natural gas company. The Company’s oil and natural gas property interests are located in the United States, primarily in North Dakota, Montana, and Pennsylvania, as well as in western Canada in the provinces of Alberta, British Columbia and Saskatchewan. The Company’s oil and natural gas property interests contains proved plus probable gross reserves of approximately 14.3 million barrels (MMbbls) of light and medium crude oil, 39.0 MMbbls of heavy crude oil, 123 MMbbls of tight oil, 18.1 MMbbls of natural gas liquids (NGLs), 126.3 billion cubic feet (Bcf) of conventional natural gas and 1,002.8 Bcf of shale gas, for a total of approximately 382.5 million barrels of oil equivalent (MMBOE). The Company’s primary crude oil properties in the United States are located in the Fort Berthold region of North Dakota and in Richland County, Montana.

About Wildhorse Resource Development

WildHorse Resource Development Corporation is a holding company. The Company is an independent oil and natural gas company. The Company is focused on the acquisition, exploitation, exploration and development of oil, natural gas and natural gas liquid (NGL) resources in the United States. Its assets are characterized by concentrated acreage positions in Southeast Texas and North Louisiana with multiple producing stratigraphic horizons, or stacked pay zones, and single-well rates of return. In Southeast Texas, it operates in Burleson, Lee and Washington Counties where it primarily targets the Eagle Ford Shale (Eagle Ford Acreage), which is an active shale trends in North America. In North Louisiana, the Company operates in and around the Terryville Complex, where it primarily targets the overpressured Cotton Valley play (North Louisiana Acreage). The Company’s subsidiaries include WildHorse Resources II, LLC (WildHorse) and Esquisto and Acquisition Co.

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