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Comparing Legacy Reserves (OTCMKTS:LGCYQ) & Amplify Energy (NYSE:AMPY)

Defense World ·  Apr 16, 2023 13:23

Legacy Reserves (OTCMKTS:LGCYQ – Get Rating) and Amplify Energy (NYSE:AMPY – Get Rating) are both oils/energy companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, risk, valuation, earnings, analyst recommendations, profitability and dividends.

Institutional & Insider Ownership

44.4% of Amplify Energy shares are owned by institutional investors. 0.8% of Legacy Reserves shares are owned by company insiders. Comparatively, 1.0% of Amplify Energy shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

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Valuation and Earnings

This table compares Legacy Reserves and Amplify Energy's gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Legacy Reserves N/A N/A N/A N/A N/A
Amplify Energy $458.46 million 0.64 $57.88 million $1.37 5.51

Amplify Energy has higher revenue and earnings than Legacy Reserves.

Analyst Ratings

This is a summary of current ratings and target prices for Legacy Reserves and Amplify Energy, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Legacy Reserves 0 0 0 0 N/A
Amplify Energy 0 0 1 0 3.00

Amplify Energy has a consensus price target of $12.00, indicating a potential upside of 58.94%. Given Amplify Energy's higher probable upside, analysts clearly believe Amplify Energy is more favorable than Legacy Reserves.

Profitability

This table compares Legacy Reserves and Amplify Energy's net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Legacy Reserves N/A N/A N/A
Amplify Energy 12.62% -97.97% 12.65%

Summary

Amplify Energy beats Legacy Reserves on 7 of the 8 factors compared between the two stocks.

About Legacy Reserves

(Get Rating)

Legacy Reserves Inc., an independent energy company, engages in the acquisition, development, and production of oil and natural gas properties in the United States. It focuses on the horizontal development of unconventional plays in the Permian Basin and the management of shallow-decline oil and natural gas wells in the regions of Permian Basin, East Texas, Rocky Mountain, and Mid-Continent. As of December 31, 2018, the company had proved reserves of approximately 164.9 million barrels of crude oil equivalent covering natural gas, as well as oil and natural gas liquids. Legacy Reserves Inc. was founded in 2005 and is based in Midland, Texas. On June 18, 2019, Legacy Reserves Inc., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas.

About Amplify Energy

(Get Rating)

Amplify Energy Corp. is an independent oil and natural gas company, which engages in the acquisition, development, exploration, and production of oil and natural gas properties. It focuses on operations in Oklahoma, the Rockies, offshore Southern California, East Texas and North Louisiana, and Eagle Ford. The company was founded in 2011 and is headquartered in Houston, TX.

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