Critical Review: Sundance Energy Australia (OTCMKTS:SDCJF) versus Obsidian Energy (OTCMKTS:OBELF)

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Obsidian Energy	99.13%	78.07%	35.32%
Sundance Energy Australia	24.02%	13.45%	6.16%

Institutional and Insider Ownership

0.0% of Obsidian Energy shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Obsidian Energy and Sundance Energy Australia”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Obsidian Energy	$220.00 million	1.89	-$576.07 million	$4.17	1.24
Sundance Energy Australia	$164.93 million	0.06	-$28.14 million	N/A	N/A

Sundance Energy Australia has lower revenue, but higher earnings than Obsidian Energy.

Risk & Volatility

Obsidian Energy has a beta of 2.47, meaning that its share price is 147% more volatile than the S&P 500. Comparatively, Sundance Energy Australia has a beta of 3.96, meaning that its share price is 296% more volatile than the S&P 500.

Summary

Obsidian Energy beats Sundance Energy Australia on 6 of the 8 factors compared between the two stocks.

About Obsidian Energy

Obsidian Energy Ltd. is an exploration and production company. The firm engages in exploring, developing, and holds interests in oil and natural gas properties and related production infrastructure in the Western Canada Sedimentary Basin directly and through investments in securities of subsidiaries holding such interests. Its property portfolio includes Cardium, Viking, and Peace River. The company was founded on December 27, 1979 and is headquartered in Calgary, Canada.

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.