Contrasting Enerplus (NYSE:ERF) & GulfSlope Energy (NYSE:GSPE)

Share on StockTwits

GulfSlope Energy (OTCMKTS:GSPE) and Enerplus (NYSE:ERF) are both small-cap oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, institutional ownership, valuation, profitability, analyst recommendations, earnings and dividends.

Insider & Institutional Ownership

0.0% of GulfSlope Energy shares are held by institutional investors. Comparatively, 58.2% of Enerplus shares are held by institutional investors. 44.3% of GulfSlope Energy shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares GulfSlope Energy and Enerplus’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
GulfSlope Energy N/A N/A -13.13%
Enerplus 31.33% 14.62% 8.85%

Earnings & Valuation

This table compares GulfSlope Energy and Enerplus’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
GulfSlope Energy N/A N/A -$2.63 million N/A N/A
Enerplus $997.46 million 1.63 $291.84 million $1.09 6.28

Enerplus has higher revenue and earnings than GulfSlope Energy.

Dividends

Enerplus pays an annual dividend of $0.09 per share and has a dividend yield of 1.3%. GulfSlope Energy does not pay a dividend. Enerplus pays out 8.3% of its earnings in the form of a dividend.

Volatility & Risk

GulfSlope Energy has a beta of 2.85, suggesting that its stock price is 185% more volatile than the S&P 500. Comparatively, Enerplus has a beta of 1.73, suggesting that its stock price is 73% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for GulfSlope Energy and Enerplus, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
GulfSlope Energy 0 0 0 0 N/A
Enerplus 0 2 2 0 2.50

Enerplus has a consensus target price of $18.17, indicating a potential upside of 165.21%. Given Enerplus’ higher probable upside, analysts plainly believe Enerplus is more favorable than GulfSlope Energy.

Summary

Enerplus beats GulfSlope Energy on 9 of the 12 factors compared between the two stocks.

About GulfSlope Energy

GulfSlope Energy, Inc., an independent oil and natural gas exploration company, focuses on the exploration and development of oil and natural gas properties in the Gulf of Mexico federal waters offshore Louisiana in the United States. It has leased 14 federal outer continental shelf blocks and licensed 2.2 million acres of three-dimensional seismic data in its area of concentration. The company was formerly known as Plan A Promotions, Inc. and changed its name to GulfSlope Energy, Inc. in April 2012. GulfSlope Energy, Inc. was founded in 2003 and is headquartered in Houston, Texas.

About Enerplus

Enerplus Corporation, together with subsidiaries, engages in the exploration and development of crude oil and natural gas in the United States and Canada. The company's oil and natural gas properties are located primarily in North Dakota, Montana, Colorado, and Pennsylvania; and Alberta, British Columbia, and Saskatchewan. As of December 31, 2018, it had proved plus probable gross reserves of approximately 12.7 million barrels (MMbbls) of light and medium crude oil; 28.4 MMbbls of heavy crude oil; 167.2 MMbbls of tight oil; 21.1 MMbbls of natural gas liquids; 41.1 billion cubic feet (Bcf) of conventional natural gas; and 1,149.5 Bcf of shale gas. The company was founded in 1986 and is headquartered in Calgary, Canada.

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