Ring Energy (NYSE:REI – Get Rating) and PetroQuest Energy (OTCMKTS:PQUE – Get Rating) are both small-cap oils/energy companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, valuation, profitability, institutional ownership, analyst recommendations, dividends and risk.
Volatility and Risk
Ring Energy has a beta of 1.87, meaning that its stock price is 87% more volatile than the S&P 500. Comparatively, PetroQuest Energy has a beta of 1.56, meaning that its stock price is 56% more volatile than the S&P 500.
This table compares Ring Energy and PetroQuest Energy’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation & Earnings
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Ring Energy||$196.31 million||1.88||$3.32 million||$0.70||4.03|
|PetroQuest Energy||$108.29 million||0.00||-$6.63 million||($0.55)||-0.04|
Ring Energy has higher revenue and earnings than PetroQuest Energy. PetroQuest Energy is trading at a lower price-to-earnings ratio than Ring Energy, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
35.6% of Ring Energy shares are owned by institutional investors. Comparatively, 1.6% of PetroQuest Energy shares are owned by institutional investors. 1.7% of Ring Energy shares are owned by insiders. Comparatively, 8.8% of PetroQuest Energy shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This is a summary of current ratings for Ring Energy and PetroQuest Energy, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Ring Energy currently has a consensus target price of $7.50, indicating a potential upside of 165.96%. Given Ring Energy’s higher possible upside, equities research analysts plainly believe Ring Energy is more favorable than PetroQuest Energy.
Ring Energy beats PetroQuest Energy on 11 of the 12 factors compared between the two stocks.
About Ring Energy
Ring Energy, Inc., an exploration and production company, engages in the acquisition, exploration, development, and production of oil and natural gas in Texas and New Mexico. As of December 31, 2021, the company's proved reserves consisted of approximately 77.8 million barrel of oil equivalent. It also had interests in 18,882 net developed acres and 1,406 net undeveloped acres in Andrews and Gaines counties, Texas; 18,437 net developed acres in Culberson and Reeves counties, Texas; and 13,662 net developed acres and 11,993 net undeveloped acres in Yoakum, Runnels, and Coke Counties, Texas and Lea County, New Mexico. Ring Energy, Inc. primarily sells its oil and natural gas production to end users, marketers, and other purchasers. The company was formerly known as Transglobal Mining Corp. and changed its name to Ring Energy, Inc. in March 2008. Ring Energy, Inc. was incorporated in 2004 and is headquartered in The Woodlands, Texas.
About PetroQuest Energy
PetroQuest Energy, Inc. operates as an independent oil and gas company in Texas and Louisiana. The company acquires, explores for, develops, and operates oil and gas properties. As of December 31, 2017, it had estimated proved reserves of 1.8 million barrels of oil; 19.4 billion cubic feet equivalent of natural gas liquids; and 125.4 billion cubic feet of natural gas. PetroQuest Energy, Inc. was founded in 1983 and is headquartered in Lafayette, Louisiana.
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