Kosmos Energy (NYSE:KOS – Get Free Report) and Amplify Energy (NYSE:AMPY – Get Free Report) are both oils/energy companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, valuation, dividends, risk, analyst recommendations and earnings.
Volatility and Risk
Kosmos Energy has a beta of 2.36, indicating that its share price is 136% more volatile than the S&P 500. Comparatively, Amplify Energy has a beta of 2.03, indicating that its share price is 103% more volatile than the S&P 500.
Profitability
This table compares Kosmos Energy and Amplify Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Kosmos Energy | 12.55% | 39.94% | 7.83% |
| Amplify Energy | 122.36% | 10.50% | 5.24% |
Valuation & Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Kosmos Energy | $1.70 billion | 1.62 | $213.52 million | $0.44 | 13.32 |
| Amplify Energy | $307.60 million | 0.91 | $392.75 million | $9.66 | 0.73 |
Amplify Energy has lower revenue, but higher earnings than Kosmos Energy. Amplify Energy is trading at a lower price-to-earnings ratio than Kosmos Energy, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current ratings and recommmendations for Kosmos Energy and Amplify Energy, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Kosmos Energy | 0 | 1 | 5 | 0 | 2.83 |
| Amplify Energy | 0 | 0 | 3 | 0 | 3.00 |
Kosmos Energy presently has a consensus target price of $9.63, suggesting a potential upside of 64.39%. Amplify Energy has a consensus target price of $9.83, suggesting a potential upside of 39.09%. Given Kosmos Energy’s higher possible upside, analysts clearly believe Kosmos Energy is more favorable than Amplify Energy.
Insider and Institutional Ownership
95.3% of Kosmos Energy shares are owned by institutional investors. Comparatively, 42.8% of Amplify Energy shares are owned by institutional investors. 1.8% of Kosmos Energy shares are owned by company insiders. Comparatively, 2.0% 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 stock will outperform the market over the long term.
Summary
Kosmos Energy beats Amplify Energy on 9 of the 14 factors compared between the two stocks.
About Kosmos Energy
Kosmos Energy Ltd., together with its subsidiaries, engages in the exploration, development, and production of oil and gas along the Atlantic Margins in the United States. The company's primary assets include production projects located in offshore Ghana, Equatorial Guinea, and the U.S. Gulf of Mexico, as well as gas projects located in offshore Mauritania and Senegal. It undertakes a proven basin exploration program in Equatorial Guinea and the U.S. Gulf of Mexico. Kosmos Energy Ltd. was founded in 2003 and is headquartered in Dallas, Texas.
About Amplify Energy
Amplify Energy Corp., together with its subsidiaries, engages in the acquisition, development, exploitation, and production of oil and natural gas properties in the United States. The company's properties consist of operated and non-operated working interests in producing and undeveloped leasehold acreage, as well as working interests in identified producing wells located in Oklahoma, the Rockies, federal waters offshore Southern California, East Texas/North Louisiana, and Eagle Ford. The company is based in Houston, Texas.
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