Whiting Petroleum (WLL) vs. Berry Petroleum (BRY) Critical Review

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

Earnings and Valuation

This table compares Whiting Petroleum and Berry Petroleum’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Whiting Petroleum $2.08 billion 1.24 $342.49 million $2.18 12.94
Berry Petroleum $586.56 million 1.78 $147.10 million $1.26 10.12

Whiting Petroleum has higher revenue and earnings than Berry Petroleum. Berry Petroleum is trading at a lower price-to-earnings ratio than Whiting Petroleum, indicating that it is currently the more affordable of the two stocks.

Dividends

Berry Petroleum pays an annual dividend of $0.48 per share and has a dividend yield of 3.8%. Whiting Petroleum does not pay a dividend. Berry Petroleum pays out 38.1% of its earnings in the form of a dividend.

Profitability

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

Net Margins Return on Equity Return on Assets
Whiting Petroleum 16.45% 5.45% 2.89%
Berry Petroleum N/A N/A N/A

Analyst Ratings

This is a summary of current recommendations for Whiting Petroleum and Berry Petroleum, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Whiting Petroleum 0 7 15 0 2.68
Berry Petroleum 0 2 8 0 2.80

Whiting Petroleum presently has a consensus target price of $49.10, suggesting a potential upside of 74.02%. Berry Petroleum has a consensus target price of $17.71, suggesting a potential upside of 40.37%. Given Whiting Petroleum’s higher possible upside, analysts plainly believe Whiting Petroleum is more favorable than Berry Petroleum.

Insider and Institutional Ownership

98.8% of Whiting Petroleum shares are held by institutional investors. Comparatively, 81.3% of Berry Petroleum shares are held by institutional investors. 1.2% of Whiting Petroleum shares are held by company insiders. Comparatively, 0.6% of Berry Petroleum shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Whiting Petroleum beats Berry Petroleum on 12 of the 15 factors compared between the two stocks.

About Whiting Petroleum

Whiting Petroleum Corporation engages in the acquisition, exploration, development, and production of crude oil, natural gas liquids, and natural gas primarily in the Rocky Mountains region of the United States. The company sells its oil and gas production to end users, marketers, and other purchasers. As of December 31, 2018, it had interests in 2,097 net productive wells on approximately 539,300 net developed acres, as well as total estimated proved reserves of 520.1 million barrels of oil equivalent. The company was founded in 1980 and is headquartered in Denver, Colorado.

About Berry Petroleum

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.

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