Analyzing Berry Petroleum (BRY) and Encana (ECA)

Berry Petroleum (NASDAQ:BRY) and Encana (NYSE:ECA) are both oils/energy companies, but which is the superior business? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, dividends, earnings, institutional ownership and profitability.

Profitability

This table compares Berry Petroleum and Encana’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Berry Petroleum N/A N/A N/A
Encana -3.98% 9.53% 4.15%

Analyst Ratings

This is a breakdown of recent recommendations for Berry Petroleum and Encana, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Berry Petroleum 0 0 9 0 3.00
Encana 1 8 13 0 2.55

Berry Petroleum presently has a consensus target price of $20.67, indicating a potential upside of 66.80%. Encana has a consensus target price of $15.22, indicating a potential upside of 126.47%. Given Encana’s higher possible upside, analysts plainly believe Encana is more favorable than Berry Petroleum.

Valuation & Earnings

This table compares Berry Petroleum and Encana’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Berry Petroleum N/A N/A N/A N/A N/A
Encana $4.44 billion 1.44 $827.00 million $0.43 15.63

Encana has higher revenue and earnings than Berry Petroleum.

Dividends

Berry Petroleum pays an annual dividend of $0.36 per share and has a dividend yield of 2.9%. Encana pays an annual dividend of $0.06 per share and has a dividend yield of 0.9%. Encana pays out 14.0% of its earnings in the form of a dividend.

Institutional & Insider Ownership

31.1% of Berry Petroleum shares are held by institutional investors. Comparatively, 66.4% of Encana shares are held by institutional investors. 2.2% of Berry Petroleum shares are held by insiders. Comparatively, 0.1% of Encana shares are held 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

Encana beats Berry Petroleum on 6 of the 11 factors compared between the two stocks.

Berry Petroleum Company Profile

Berry Petroleum Company, LLC., formerly Berry Petroleum Company, is an independent energy company. The Company is engaged in the production, development, exploitation, and acquisition of oil and natural gas. The Company’s principal reserves and producing properties are located in California (South Midway-Sunset (SMWSS)-Steam Floods, North Midway-Sunset (NMWSS)-Diatomite, NMWSS-New Steam Floods, Texas (Permian and E. Texas), Utah (Uinta) and Colorado (Piceance). The Company’s operations are conducted in the continental United States. In December 2013, Linn Energy LLC and Linn Co, LLC (Linn Co) announced the completion of the merger between LinnCo and Berry Petroleum Company (Berry), where LinnCo had acquired all of Berry’s interest.

Encana Company Profile

Encana Corporation, together with its subsidiaries, engages in the exploration, development, production, and marketing of natural gas, oil, and natural gas liquids. The company holds interests in various assets, including the Montney in northern British Columbia and northwest Alberta; Duvernay in west central Alberta; and other upstream operations comprising Wheatland in southern Alberta, Horn River in northeast British Columbia, and Deep Panuke located in offshore Nova Scotia in Canada. It also owns interests in assets consisting of the Eagle Ford in south Texas and Permian in west Texas; and San Juan in northwest New Mexico. The company primarily markets its products to refiners, local distribution companies, energy marketing companies, and electronic exchanges. Encana Corporation was founded in 1971 and is headquartered in Calgary, Canada.

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