Head-To-Head Review: FAR (OTCMKTS:FARYF) vs. Kosmos Energy (NYSE:KOS)

Kosmos Energy (NYSE:KOS) and FAR (OTCMKTS:FARYF) are both small-cap energy companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, valuation, earnings, profitability, dividends, analyst recommendations and institutional ownership.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kosmos Energy	-23.64%	-26.28%	-5.31%
FAR	N/A	N/A	N/A

Insider & Institutional Ownership

95.3% of Kosmos Energy shares are held by institutional investors. 2.0% of Kosmos Energy shares are held by company insiders. Comparatively, 1.0% of FAR shares are held 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.

Valuation and Earnings

This table compares Kosmos Energy and FAR”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kosmos Energy	$1.68 billion	0.39	$189.85 million	($0.68)	-2.02
FAR	N/A	N/A	N/A	N/A	N/A

Kosmos Energy has higher revenue and earnings than FAR.

Volatility & Risk

Kosmos Energy has a beta of 0.9, indicating that its stock price is 10% less volatile than the S&P 500. Comparatively, FAR has a beta of 0.06, indicating that its stock price is 94% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Kosmos Energy and FAR, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kosmos Energy	2	5	2	0	2.00
FAR	0	0	0	0	0.00

Kosmos Energy currently has a consensus price target of $2.08, indicating a potential upside of 51.17%. Given Kosmos Energy’s stronger consensus rating and higher possible upside, research analysts plainly believe Kosmos Energy is more favorable than FAR.

Summary

Kosmos Energy beats FAR on 7 of the 10 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 FAR

FAR Limited operates as an oil and gas exploration and development company with primary assets in West Africa and Australia. The company holds a portfolio of exploration licenses in the Gambia and Guinea-Bissau. It also holds a petroleum exploration permit in Western Australia. The company was formerly known as First Australian Resources NL and changed its name to FAR Limited in 2010. FAR Limited was incorporated in 1984 and is based in Melbourne, Australia.