Charah Solutions (NYSE:CHRA) and Bonanza Creek Energy (NYSE:BCEI) are both small-cap oils/energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, analyst recommendations, valuation, institutional ownership, dividends and profitability.
Profitability
This table compares Charah Solutions and Bonanza Creek Energy's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Charah Solutions | -9.62% | -57.01% | -8.52% |
| Bonanza Creek Energy | 50.70% | 16.10% | 12.68% |
Earnings & Valuation
This table compares Charah Solutions and Bonanza Creek Energy's top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Charah Solutions | $554.87 million | 0.18 | $-42,060,000.00 | ($0.94) | -3.47 |
| Bonanza Creek Energy | $313.22 million | 1.05 | $67.07 million | $3.24 | 4.88 |
Bonanza Creek Energy has lower revenue, but higher earnings than Charah Solutions. Charah Solutions is trading at a lower price-to-earnings ratio than Bonanza Creek Energy, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Charah Solutions has a beta of 0.43, indicating that its share price is 57% less volatile than the S&P 500. Comparatively, Bonanza Creek Energy has a beta of 2.15, indicating that its share price is 115% more volatile than the S&P 500.
Institutional and Insider Ownership
23.3% of Charah Solutions shares are held by institutional investors. 3.7% of Charah Solutions shares are held by insiders. Comparatively, 1.6% of Bonanza Creek Energy shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Analyst Ratings
This is a breakdown of recent recommendations for Charah Solutions and Bonanza Creek Energy, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Charah Solutions | 1 | 1 | 1 | 0 | 2.00 |
| Bonanza Creek Energy | 0 | 1 | 3 | 0 | 2.75 |
Charah Solutions presently has a consensus price target of $2.4167, suggesting a potential downside of 25.87%. Bonanza Creek Energy has a consensus price target of $26.50, suggesting a potential upside of 67.62%. Given Bonanza Creek Energy's stronger consensus rating and higher possible upside, analysts plainly believe Bonanza Creek Energy is more favorable than Charah Solutions.
Summary
Bonanza Creek Energy beats Charah Solutions on 11 of the 14 factors compared between the two stocks.
