Antero Resources (NYSE:AR – Get Rating) and Laredo Petroleum (NYSE:LPI – Get Rating) are both oils/energy companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, analyst recommendations, earnings and risk.
Analyst Ratings
This is a summary of recent ratings and recommmendations for Antero Resources and Laredo Petroleum, as reported by MarketBeat.
Get Antero Resources alerts:| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Antero Resources | 0 | 2 | 7 | 1 | 2.90 |
| Laredo Petroleum | 1 | 0 | 3 | 0 | 2.50 |
Antero Resources currently has a consensus target price of $45.70, suggesting a potential upside of 27.55%. Laredo Petroleum has a consensus target price of $115.00, suggesting a potential upside of 78.85%. Given Laredo Petroleum's higher probable upside, analysts plainly believe Laredo Petroleum is more favorable than Antero Resources.
Institutional and Insider Ownership
80.2% of Antero Resources shares are owned by institutional investors. Comparatively, 77.4% of Laredo Petroleum shares are owned by institutional investors. 5.7% of Antero Resources shares are owned by insiders. Comparatively, 2.2% of Laredo Petroleum shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.Earnings and Valuation
This table compares Antero Resources and Laredo Petroleum's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Antero Resources | $4.62 billion | 2.37 | -$186.90 million | $2.69 | 13.32 |
| Laredo Petroleum | $1.39 billion | 0.80 | $145.01 million | $31.63 | 2.03 |
Laredo Petroleum has lower revenue, but higher earnings than Antero Resources. Laredo Petroleum is trading at a lower price-to-earnings ratio than Antero Resources, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Antero Resources has a beta of 3.63, meaning that its stock price is 263% more volatile than the S&P 500. Comparatively, Laredo Petroleum has a beta of 3.52, meaning that its stock price is 252% more volatile than the S&P 500.
Profitability
This table compares Antero Resources and Laredo Petroleum's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Antero Resources | 16.24% | 19.52% | 8.18% |
| Laredo Petroleum | 27.23% | 65.73% | 11.63% |
Summary
Antero Resources beats Laredo Petroleum on 9 of the 15 factors compared between the two stocks.
About Antero Resources
(Get Rating)
Antero Resources Corporation, an independent oil and natural gas company, acquires, explores for, develops, and produces natural gas, natural gas liquids, and oil properties in the United States. As of December 31, 2021, it had approximately 502,000 net acres in the Appalachian Basin; and 174,000 net acres in the Upper Devonian Shale. The company also owned and operated 494 miles of gas gathering pipelines in the Appalachian Basin; and 21 compressor stations. It had estimated proved reserves of 17.7 trillion cubic feet of natural gas equivalent, including 10.2 trillion cubic feet of natural gas; 718 million barrels of assumed recovered ethane; 501 million barrels of primarily propane, isobutane, normal butane, and natural gasoline; and 36 million barrels of oil. The company was formerly known as Antero Resources Appalachian Corporation and changed its name to Antero Resources Corporation in June 2013. Antero Resources Corporation was founded in 2002 and is headquartered in Denver, Colorado.
About Laredo Petroleum
(Get Rating)
Laredo Petroleum, Inc., an independent energy company, engages in the acquisition, exploration, and development of oil and natural gas properties in the Permian Basin of West Texas, the United States. The company sells oil, natural gas liquids, and natural gas. As of December 31, 2021, it had assembled 166,064 net acres in the Permian Basin; and had total proved undeveloped reserves of 86,592 thousand barrels of oil equivalent. The company was formerly known as Laredo Petroleum Holdings, Inc. and changed its name to Laredo Petroleum, Inc. in December 2013. Laredo Petroleum, Inc. was incorporated in 2006 and is headquartered in Tulsa, Oklahoma.
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