CrossAmerica Partners (NYSE:CAPL – Get Free Report) and Prairie Operating (NASDAQ:PROP – Get Free Report) are both small-cap energy companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, earnings, dividends, risk, valuation, institutional ownership and analyst recommendations.
Risk and Volatility
CrossAmerica Partners has a beta of 0.3, suggesting that its stock price is 70% less volatile than the S&P 500. Comparatively, Prairie Operating has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500.
Profitability
This table compares CrossAmerica Partners and Prairie Operating’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CrossAmerica Partners | 1.43% | -37.73% | 3.92% |
| Prairie Operating | -13.02% | 46.53% | 5.51% |
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CrossAmerica Partners | $3.66 billion | 0.23 | $39.11 million | $1.37 | 16.39 |
| Prairie Operating | $241.65 million | 0.19 | $32.05 million | ($2.05) | -0.20 |
CrossAmerica Partners has higher revenue and earnings than Prairie Operating. Prairie Operating is trading at a lower price-to-earnings ratio than CrossAmerica Partners, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
24.1% of CrossAmerica Partners shares are owned by institutional investors. Comparatively, 34.3% of Prairie Operating shares are owned by institutional investors. 52.0% of CrossAmerica Partners shares are owned by insiders. Comparatively, 3.1% of Prairie Operating shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current ratings and price targets for CrossAmerica Partners and Prairie Operating, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CrossAmerica Partners | 0 | 1 | 0 | 1 | 3.00 |
| Prairie Operating | 2 | 1 | 1 | 0 | 1.75 |
Prairie Operating has a consensus price target of $2.50, indicating a potential upside of 511.25%. Given Prairie Operating’s higher probable upside, analysts clearly believe Prairie Operating is more favorable than CrossAmerica Partners.
Summary
CrossAmerica Partners beats Prairie Operating on 9 of the 15 factors compared between the two stocks.
About CrossAmerica Partners
CrossAmerica Partners LP engages in the wholesale distribution of motor fuels, operation of convenience stores, and ownership and leasing of real estate used in the retail distribution of motor fuels in the United States. It operates in two segments, Wholesale and Retail. The Wholesale segment engages in the wholesale distribution of motor fuels to lessee dealers, independent dealers, commission agents, and company operated retail sites. The Retail segment is involved in the sale of convenience merchandise items; and retail sale of motor fuels at company operated retail sites and retail sites operated by commission agents. CrossAmerica GP LLC operates as the general partner of the company. The company was formerly known as Lehigh Gas Partners LP and changed its name to CrossAmerica Partners LP in October 2014. The company was founded in 1992 and is based in Allentown, Pennsylvania.
About Prairie Operating
Prairie Operating Co., an independent energy company, engages in the development, exploration, and production of oil, natural gas, and natural gas liquids in the United States. The company holds assets in the Denver-Julesburg Basin in Colorado; and the Niobrara and Codell formations. Prairie Operating Co. is based in Houston Texas.
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