Contrasting VAALCO Energy (NYSE:EGY) & Vermilion Energy (NYSE:VET)

VAALCO Energy (NYSE:EGYGet Rating) and Vermilion Energy (NYSE:VETGet Rating) are both oils/energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, profitability, institutional ownership, valuation, earnings, analyst recommendations and dividends.

Dividends

VAALCO Energy pays an annual dividend of $0.13 per share and has a dividend yield of 1.6%. Vermilion Energy pays an annual dividend of $0.19 per share and has a dividend yield of 0.8%. VAALCO Energy pays out 9.2% of its earnings in the form of a dividend. Vermilion Energy pays out 4.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Profitability

This table compares VAALCO Energy and Vermilion Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
VAALCO Energy 36.91% 42.80% 21.69%
Vermilion Energy 37.30% 27.58% 9.48%

Valuation & Earnings

This table compares VAALCO Energy and Vermilion Energy’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
VAALCO Energy $199.07 million 2.40 $81.84 million $1.41 5.75
Vermilion Energy $1.66 billion 2.31 $916.54 million $4.52 5.14

Vermilion Energy has higher revenue and earnings than VAALCO Energy. Vermilion Energy is trading at a lower price-to-earnings ratio than VAALCO Energy, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current recommendations for VAALCO Energy and Vermilion Energy, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
VAALCO Energy 0 0 0 0 N/A
Vermilion Energy 0 5 3 0 2.38

Vermilion Energy has a consensus target price of $33.06, indicating a potential upside of 42.24%. Given Vermilion Energy’s higher possible upside, analysts plainly believe Vermilion Energy is more favorable than VAALCO Energy.

Risk and Volatility

VAALCO Energy has a beta of 1.77, suggesting that its stock price is 77% more volatile than the S&P 500. Comparatively, Vermilion Energy has a beta of 2.46, suggesting that its stock price is 146% more volatile than the S&P 500.

Institutional & Insider Ownership

39.9% of VAALCO Energy shares are owned by institutional investors. Comparatively, 25.6% of Vermilion Energy shares are owned by institutional investors. 2.0% of VAALCO Energy shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Vermilion Energy beats VAALCO Energy on 8 of the 15 factors compared between the two stocks.

VAALCO Energy Company Profile (Get Rating)

VAALCO Energy, Inc., an independent energy company, acquires, explores for, develops, and produces crude oil and natural gas. The company holds Etame production sharing contract related to the Etame Marin block located offshore in the Republic of Gabon in West Africa. It also owns interests in an undeveloped block offshore Equatorial Guinea, West Africa. VAALCO Energy, Inc. was incorporated in 1985 and is headquartered in Houston, Texas.

Vermilion Energy Company Profile (Get Rating)

Vermilion Energy Inc., together with its subsidiaries, engages in the acquisition, exploration, development, and production of petroleum and natural gas in North America, Europe, and Australia. It owns 81% working interest in 636,714 net acres of developed land and 85% working interest in 301,026 net acres of undeveloped land; 130,715 net acres of land in the Powder River basin in the United States; 96% working interest in 248,873 net acres of developed land and 86% working interest in 134,160 net acres of undeveloped land in the Aquitaine and Paris Basins in France; 53% working interest in 901,791 net acres of land in the Netherlands; 54,625 net developed acres and 920,723 net undeveloped acres in Germany; 975,375 net acres land in Croatia; 946,666 net acres land in Hungary; and 48,954 net acres land in Slovakia. As of December 31, 2021, the company had 401 net producing conventional natural gas wells and 2,132 net producing light and medium crude oil wells in Canada; 167.6 net producing light and medium crude oil wells in the United States; 297.0 net producing light and medium crude oil wells and 3 net producing conventional natural gas wells in France; and 47 net producing natural gas wells in the Netherlands. It also owns 20% interests in the offshore Corrib natural gas field located to the northwest coast of Ireland; and 100% working interest in the Wandoo offshore oil field and related production facilities that covers 59,553 acres located on Western Australia's northwest shelf. Vermilion Energy Inc. was founded in 1994 and is headquartered in Calgary, Canada.

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