Head to Head Comparison: PrimeEnergy (NASDAQ:PNRG) vs. Kosmos Energy (NYSE:KOS)

Kosmos Energy (NYSE:KOS) and PrimeEnergy (NASDAQ:PNRG) are both small-cap energy companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, earnings, risk, dividends, valuation, analyst recommendations and profitability.

Earnings & Valuation

This table compares Kosmos Energy and PrimeEnergy”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kosmos Energy	$1.29 billion	1.23	-$699.79 million	($1.19)	-2.24
PrimeEnergy	$189.05 million	1.73	$26.31 million	$10.38	19.92

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

Analyst Ratings

This is a breakdown of recent recommendations for Kosmos Energy and PrimeEnergy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kosmos Energy	4	3	2	0	1.78
PrimeEnergy	0	2	0	0	2.00

Kosmos Energy currently has a consensus price target of $2.53, suggesting a potential downside of 5.30%. Given Kosmos Energy’s higher possible upside, equities analysts clearly believe Kosmos Energy is more favorable than PrimeEnergy.

Volatility & Risk

Kosmos Energy has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500. Comparatively, PrimeEnergy has a beta of -0.24, indicating that its stock price is 124% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kosmos Energy	-33.98%	-17.73%	-2.49%
PrimeEnergy	13.87%	11.47%	7.67%

Institutional & Insider Ownership

95.3% of Kosmos Energy shares are owned by institutional investors. 1.9% of Kosmos Energy shares are owned by insiders. Comparatively, 65.3% of PrimeEnergy shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

PrimeEnergy beats Kosmos Energy on 9 of the 14 factors compared between the two stocks.

About Kosmos Energy

Kosmos Energy Ltd., together with its subsidiaries, engages in the exploration, development, and production of oil and gas along the Atlantic Margins in the United States. The company’s primary assets include production projects located in offshore Ghana, Equatorial Guinea, and the U.S. Gulf of Mexico, as well as gas projects located in offshore Mauritania and Senegal. It undertakes a proven basin exploration program in Equatorial Guinea and the U.S. Gulf of Mexico. Kosmos Energy Ltd. was founded in 2003 and is headquartered in Dallas, Texas.

About PrimeEnergy

PrimeEnergy Resources Corporation, through its subsidiaries, engages in acquisition, development, and production of oil and natural gas properties in the United States. The company owns leasehold, mineral, and royalty interests in producing and non-producing oil and gas properties; and operates approximately 534 active wells and owns non-operating interests and royalties in 952 additional wells. It also acquires producing oil and gas properties through joint ventures with industry partners; and provides contract services to third parties, including well-servicing support, site-preparation, and construction services for oil and gas drilling and reworking operations. The company was formerly known as PrimeEnergy Corporation and changed its name to PrimeEnergy Resources Corporation in December 2018. PrimeEnergy Resources Corporation was incorporated in 1973 and is headquartered in Houston, Texas.