APA (NASDAQ:APA) and Pilgrim Petroleum (OTCMKTS:PGPM) Critical Comparison

Pilgrim Petroleum (OTCMKTS:PGPM) and APA (NASDAQ:APA) are both oils/energy companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, profitability, dividends, analyst recommendations, valuation, institutional ownership and risk.

Valuation & Earnings

This table compares Pilgrim Petroleum and APA”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pilgrim Petroleum	N/A	N/A	N/A	N/A	N/A
APA	$9.74 billion	0.74	$2.86 billion	$2.26	8.73

APA has higher revenue and earnings than Pilgrim Petroleum.

Analyst Ratings

This is a summary of recent ratings and price targets for Pilgrim Petroleum and APA, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pilgrim Petroleum	0	0	0	0	0.00
APA	4	10	5	0	2.05

APA has a consensus target price of $29.15, suggesting a potential upside of 47.77%. Given APA’s stronger consensus rating and higher possible upside, analysts clearly believe APA is more favorable than Pilgrim Petroleum.

Institutional & Insider Ownership

83.0% of APA shares are owned by institutional investors. 1.3% of APA shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Pilgrim Petroleum and APA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pilgrim Petroleum	N/A	N/A	N/A
APA	24.36%	27.86%	7.99%

Volatility & Risk

Pilgrim Petroleum has a beta of 0.47, meaning that its share price is 53% less volatile than the S&P 500. Comparatively, APA has a beta of 3.26, meaning that its share price is 226% more volatile than the S&P 500.

Summary

APA beats Pilgrim Petroleum on 10 of the 10 factors compared between the two stocks.

About Pilgrim Petroleum

Pilgrim Petroleum Corporation, an oil and gas exploration and development company, engages in the acquisition, development, and operation of crude oil and natural gas properties with proven reserves in the United States. The company holds interests in various projects located in Northwest Texas; the Electra Rework prospect located in Wichita and Willbarger Counties, Texas; and the City National Bank Discovery Well prospect located in Archer County, Texas. It also provides services to small and medium exploration and development companies. The company was formerly known as BNP Petroleum Corp. and changed its name to Pilgrim Petroleum Corporation in July 2005. Pilgrim Petroleum Corporation was founded in 1997 and is headquartered in Addison, Texas.

About APA

APA Corporation, an independent energy company, explores for, develops, and produces natural gas, crude oil, and natural gas liquids. It has oil and gas operations in the United States, Egypt, and North Sea. The company also has exploration and appraisal activities in Suriname, as well as holds interests in projects located in Uruguay and internationally. APA Corporation was incorporated in 1954 and is headquartered in Houston, Texas.