Analyzing VAALCO Energy (NYSE:EGY) and Advantage Energy (OTCMKTS:AAVVF)

VAALCO Energy (NYSE:EGYGet Free Report) and Advantage Energy (OTCMKTS:AAVVFGet Free Report) are both small-cap oils/energy companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, profitability, institutional ownership and earnings.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
VAALCO Energy $455.07 million 1.70 $60.35 million $0.56 13.36
Advantage Energy $400.81 million 2.91 $75.26 million $0.45 16.22

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

Risk and Volatility

VAALCO Energy has a beta of 1.29, meaning that its share price is 29% more volatile than the S&P 500. Comparatively, Advantage Energy has a beta of 1.73, meaning that its share price is 73% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
VAALCO Energy 13.26% 14.34% 7.94%
Advantage Energy 19.39% 6.54% 4.49%

Insider & Institutional Ownership

50.3% of VAALCO Energy shares are held by institutional investors. Comparatively, 7.9% of Advantage Energy shares are held by institutional investors. 1.0% of VAALCO Energy shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations and price targets for VAALCO Energy and Advantage 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
Advantage Energy 0 2 1 0 2.33

Advantage Energy has a consensus price target of $9.31, indicating a potential upside of 27.57%. Given Advantage Energy’s higher possible upside, analysts clearly believe Advantage Energy is more favorable than VAALCO Energy.

Summary

Advantage Energy beats VAALCO Energy on 7 of the 13 factors compared between the two stocks.

About VAALCO Energy

(Get Free Report)

VAALCO Energy, Inc., an independent energy company, engages in the acquisition, exploration, development, and production of crude oil, natural gas, and natural gas liquids in Gabon, Egypt, Equatorial Guinea, and Canada. The company holds 58.8% interest in the Etame production sharing contract related to the Etame Marin block covering an area of approximately 46,200 gross acres located offshore in the Republic of Gabon in West Africa. It also owns 100% interest in the Eastern Desert, which contains West Gharib, West Bakr and North West Gharib merged concessions covering as area of approximately 45,067 acres, as well as Western Desert, which contains the South Ghazalat concession covering as area of approximately 7,340 acres located in Egypt. In addition, the company production and working interests in Cardium light oil and Mannville liquids-rich gas assets covering as area of 47,400 gross acres located near the north of Calgary, Alberta; and an undeveloped block offshore Equatorial Guinea, West Africa. VAALCO Energy, Inc. was incorporated in 1985 and is headquartered in Houston, Texas.

About Advantage Energy

(Get Free Report)

Advantage Energy Ltd., together with its subsidiaries, engages in the acquisition, exploitation, development, and production natural gas, crude oil, and natural gas liquids (NGLs) in the Province of Alberta, Canada. Its assets are located approximately 4 to 80 km northwest of the city of Grande Prairie, Alberta. The company was formerly known as Advantage Oil & Gas Ltd. and changed its name to Advantage Energy Ltd. in May 2021. Advantage Energy Ltd. was founded in 2001 and is headquartered in Calgary, Canada.

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