Nostrum Oil & Gas (OTCMKTS:NSTRY) and Viper Energy Partners (NASDAQ:VNOM) Critical Survey

Nostrum Oil & Gas (OTCMKTS:NSTRYGet Rating) and Viper Energy Partners (NASDAQ:VNOMGet Rating) are both oils/energy companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, earnings, dividends, institutional ownership and profitability.

Institutional & Insider Ownership

37.9% of Viper Energy Partners shares are owned by institutional investors. 0.3% of Viper Energy Partners shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Nostrum Oil & Gas and Viper Energy Partners’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nostrum Oil & Gas $175.94 million 1.25 -$327.42 million ($6.98) -0.67
Viper Energy Partners $504.92 million 10.01 $57.94 million $0.78 38.65

Viper Energy Partners has higher revenue and earnings than Nostrum Oil & Gas. Nostrum Oil & Gas is trading at a lower price-to-earnings ratio than Viper Energy Partners, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Nostrum Oil & Gas has a beta of -0.4, meaning that its stock price is 140% less volatile than the S&P 500. Comparatively, Viper Energy Partners has a beta of 2.21, meaning that its stock price is 121% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for Nostrum Oil & Gas and Viper Energy Partners, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nostrum Oil & Gas 0 0 0 0 N/A
Viper Energy Partners 0 0 8 0 3.00

Viper Energy Partners has a consensus target price of $32.50, indicating a potential upside of 7.79%. Given Viper Energy Partners’ higher probable upside, analysts clearly believe Viper Energy Partners is more favorable than Nostrum Oil & Gas.

Profitability

This table compares Nostrum Oil & Gas and Viper Energy Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nostrum Oil & Gas N/A N/A N/A
Viper Energy Partners 11.48% 2.21% 1.65%

Summary

Viper Energy Partners beats Nostrum Oil & Gas on 13 of the 13 factors compared between the two stocks.

About Nostrum Oil & Gas (Get Rating)

Nostrum Oil & Gas PLC, an independent oil and gas company, engages in the exploration, development, and production of oil and gas in the pre-Caspian Basin. The company discovers and develops oil and gas reserves, as well as produces and sells crude oil, stabilized condensate, liquefied petroleum gas, and dry gas. Its principal producing asset is 100% owned Chinarevskoye field located in North-western Kazakhstan. As of December 31, 2020, the company had proved and probable reserves of 39 million barrels of oil equivalent (mmboe) and 146 mmboe of contingent resources. Nostrum Oil & Gas PLC was founded in 1997 and is based in London, the United Kingdom.

About Viper Energy Partners (Get Rating)

Viper Energy Partners LP owns, acquires, and exploits oil and natural gas properties in North America. As of December 31, 2021, it had mineral interests in 27,027 net royalty acres in the Permian Basin and Eagle Ford Shale; and estimated proved oil and natural gas reserves of 127,888 thousand barrels of crude oil equivalent. Viper Energy Partners GP LLC operates as the general partner of the company. The company was founded in 2013 and is based in Midland, Texas. Viper Energy Partners LP is a subsidiary of Diamondback Energy, Inc.

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