Sundance Energy Australia (OTCMKTS:SDCJF) & Battalion Oil (NYSE:BATL) Critical Review

Battalion Oil (NYSE:BATL) and Sundance Energy Australia (OTCMKTS:SDCJF) are both small-cap oils/energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, analyst recommendations, institutional ownership, earnings, dividends and risk.

Analyst Recommendations

This is a breakdown of current recommendations for Battalion Oil and Sundance Energy Australia, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Battalion Oil	0	0	0	0	N/A
Sundance Energy Australia	0	0	0	0	N/A

Insider & Institutional Ownership

86.0% of Battalion Oil shares are owned by institutional investors. 56.9% of Battalion Oil shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Battalion Oil and Sundance Energy Australia’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Battalion Oil	-26.17%	-99.89%	-8.48%
Sundance Energy Australia	24.02%	13.45%	6.16%

Risk and Volatility

Battalion Oil has a beta of 0.98, indicating that its share price is 2% less volatile than the S&P 500. Comparatively, Sundance Energy Australia has a beta of 3.96, indicating that its share price is 296% more volatile than the S&P 500.

Earnings & Valuation

This table compares Battalion Oil and Sundance Energy Australia”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Battalion Oil	$200.32 million	0.55	-$3.05 million	($4.46)	-1.50
Sundance Energy Australia	$164.93 million	0.06	-$28.14 million	N/A	N/A

Battalion Oil has higher revenue and earnings than Sundance Energy Australia.

Summary

Battalion Oil beats Sundance Energy Australia on 5 of the 9 factors compared between the two stocks.

About Battalion Oil

Battalion Oil Corporation, an independent energy company, engages in the acquisition, production, exploration, and development of onshore oil and natural gas assets in the United States. It holds interests in the Delaware Basin located in the counties of Pecos, Ward, Reeves, and Winkler, Texas. It serves independent marketers, and oil and natural gas and gas pipeline companies. The company was formerly known as Halcón Resources Corporation and changed its name to Battalion Oil Corporation in January 2020. Battalion Oil Corporation was founded in 1987 and is headquartered in Houston, Texas.

About Sundance Energy Australia

Sundance Energy Australia Limited operates as an onshore oil and gas company in the United States. The company explores for, develops, and produces oil and natural gas. Its exploration and development activities are focused on the Eagle Ford project in the South-Texas-Gulf Coast Basin. Sundance Energy Australia Limited was incorporated in 2004 and is based in Wayville, Australia.