Amplify Energy (NYSE:AMPY – Get Free Report) and Golar LNG (NASDAQ:GLNG – Get Free Report) are both energy companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, risk and valuation.
Volatility and Risk
Amplify Energy has a beta of 0.07, suggesting that its stock price is 93% less volatile than the S&P 500. Comparatively, Golar LNG has a beta of 0.13, suggesting that its stock price is 87% less volatile than the S&P 500.
Earnings and Valuation
This table compares Amplify Energy and Golar LNG”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Amplify Energy | $213.10 million | 0.85 | $43.97 million | $0.45 | 9.68 |
| Golar LNG | $393.52 million | 11.85 | $65.68 million | $1.60 | 28.77 |
Golar LNG has higher revenue and earnings than Amplify Energy. Amplify Energy is trading at a lower price-to-earnings ratio than Golar LNG, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
42.8% of Amplify Energy shares are owned by institutional investors. Comparatively, 92.2% of Golar LNG shares are owned by institutional investors. 9.0% of Amplify Energy shares are owned by company insiders. Comparatively, 0.0% of Golar LNG shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Amplify Energy and Golar LNG, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Amplify Energy | 1 | 0 | 1 | 0 | 2.00 |
| Golar LNG | 0 | 1 | 4 | 1 | 3.00 |
Amplify Energy currently has a consensus target price of $9.00, suggesting a potential upside of 106.66%. Golar LNG has a consensus target price of $68.67, suggesting a potential upside of 49.18%. Given Amplify Energy’s higher possible upside, analysts clearly believe Amplify Energy is more favorable than Golar LNG.
Profitability
This table compares Amplify Energy and Golar LNG’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Amplify Energy | 10.62% | -3.01% | -2.07% |
| Golar LNG | 31.27% | 8.91% | 3.75% |
Dividends
Amplify Energy pays an annual dividend of $0.40 per share and has a dividend yield of 9.2%. Golar LNG pays an annual dividend of $1.00 per share and has a dividend yield of 2.2%. Amplify Energy pays out 88.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Golar LNG pays out 62.5% of its earnings in the form of a dividend. Golar LNG has increased its dividend for 2 consecutive years.
Summary
Golar LNG beats Amplify Energy on 15 of the 18 factors compared between the two stocks.
About Amplify Energy
Amplify Energy Corp., together with its subsidiaries, engages in the acquisition, development, exploitation, and production of oil and natural gas properties in the United States. The company’s properties consist of operated and non-operated working interests in producing and undeveloped leasehold acreage, as well as working interests in identified producing wells located in Oklahoma, the Rockies, federal waters offshore Southern California, East Texas/North Louisiana, and Eagle Ford. The company is based in Houston, Texas.
About Golar LNG
Golar LNG Limited designs, converts, owns, and operates marine infrastructure for the liquefaction of natural gas. The company operates through three segments: FLNG, Corporate and Other, and Shipping. It engages in the regasification, storage, and offloading of liquefied natural gas (LNG); operation of floating liquefaction natural gas (FLNG) vessels or projects; transportation of LNG carriers; and vessel management activities. Golar LNG Limited was founded in 1946 and is headquartered in Hamilton, Bermuda.
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