Reviewing Legacy Reserves (OTCMKTS:LGCYQ) & Birchcliff Energy (OTCMKTS:BIREF)

Legacy Reserves (OTCMKTS:LGCYQ) and Birchcliff Energy (OTCMKTS:BIREF) are both oils/energy companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, profitability, dividends, valuation and risk.

Profitability

This table compares Legacy Reserves and Birchcliff 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
Birchcliff Energy	1.38%	0.45%	0.32%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Legacy Reserves and Birchcliff Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Legacy Reserves	0	0	0	0	N/A
Birchcliff Energy	0	1	1	0	2.50

Birchcliff Energy has a consensus target price of $4.38, suggesting a potential upside of 2.46%. Given Birchcliff Energy’s higher possible upside, analysts clearly believe Birchcliff Energy is more favorable than Legacy Reserves.

Insider & Institutional Ownership

0.8% of Birchcliff Energy shares are owned by institutional investors. 0.8% of Legacy Reserves shares are owned by company insiders. Comparatively, 1.5% of Birchcliff Energy shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Legacy Reserves and Birchcliff Energy’s top-line 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
Birchcliff Energy	$548.41 million	2.09	$7.24 million	$0.03	142.38

Birchcliff Energy has higher revenue and earnings than Legacy Reserves.

Summary

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

About Legacy Reserves

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 Birchcliff Energy

Birchcliff Energy Ltd., an intermediate oil and natural gas company, explores for, develops, and produces natural gas, light oil, condensate, and other natural gas liquids in Western Canada. The company holds interests in the areas of Montney/Doig Resource Play, including the Pouce Coupe and Gordondale properties in Alberta. Birchcliff Energy Ltd. was founded in 2004 and is headquartered in Calgary, Canada.