Comparing Enterprise GP (EPE) and Kosmos Energy (KOS)

Enterprise GP (NYSE:EPE) and Kosmos Energy (NYSE:KOS) are both oils/energy companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, profitability, valuation, risk, institutional ownership, earnings and analyst recommendations.

Profitability

This table compares Enterprise GP and Kosmos Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Enterprise GP -14.59% -12.75% -0.93%
Kosmos Energy -51.49% -21.93% -5.57%

Analyst Recommendations

This is a breakdown of recent ratings for Enterprise GP and Kosmos Energy, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Enterprise GP 1 6 0 0 1.86
Kosmos Energy 0 2 10 0 2.83

Enterprise GP currently has a consensus target price of $2.36, indicating a potential upside of 146.74%. Kosmos Energy has a consensus target price of $9.80, indicating a potential upside of 87.79%. Given Enterprise GP’s higher probable upside, equities analysts plainly believe Enterprise GP is more favorable than Kosmos Energy.

Valuation & Earnings

This table compares Enterprise GP and Kosmos Energy’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Enterprise GP $1.07 billion 0.23 -$194.00 million ($0.39) -2.45
Kosmos Energy $636.84 million 3.55 -$222.79 million ($0.33) -15.82

Enterprise GP has higher revenue and earnings than Kosmos Energy. Kosmos Energy is trading at a lower price-to-earnings ratio than Enterprise GP, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

64.3% of Enterprise GP shares are owned by institutional investors. Comparatively, 92.9% of Kosmos Energy shares are owned by institutional investors. 0.4% of Enterprise GP shares are owned by insiders. Comparatively, 3.8% of Kosmos Energy shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

Enterprise GP has a beta of 3.43, meaning that its stock price is 243% more volatile than the S&P 500. Comparatively, Kosmos Energy has a beta of 1.97, meaning that its stock price is 97% more volatile than the S&P 500.

Summary

Enterprise GP beats Kosmos Energy on 8 of the 14 factors compared between the two stocks.

Enterprise GP Company Profile

EP Energy Corporation, an independent exploration and production company, engages in the exploration for and the acquisition, development, and production of oil, natural gas, and natural gas liquids in the United States. The company has interests in three primary areas, such as the Permian basin in West Texas; the Eagle Ford Shale in South Texas; and the Altamont Field in the Uinta basin in Northeastern Utah. As of December 31, 2017, it had proved reserves of 392.1 million barrels of oil equivalent and had average net daily production of 82,257 barrel of oil equivalent/per day. The company primarily sells its oil and natural gas production to third parties. EP Energy Corporation was founded in 2013 and is headquartered in Houston, Texas.

Kosmos Energy Company Profile

Kosmos Energy Ltd. explores for and produces oil and gas in Africa and South America. Its asset portfolio includes production and other development projects in offshore Ghana and Equatorial Guinea; and exploration potential in offshore Mauritania and Senegal, as well as exploration licenses in offshore Cote d’Ivoire, Equatorial Guinea, Morocco, Sao Tome and Principe, and Suriname. The company was founded in 2003 and is based in Hamilton, Bermuda.

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