Comparing Africa Energy (OTCMKTS:HPMCF) and Callon Petroleum (NYSE:CPE)

Africa Energy (OTCMKTS:HPMCF) and Callon Petroleum (NYSE:CPE) are both energy companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.

Insider and Institutional Ownership

44.6% of Africa Energy shares are owned by institutional investors. Comparatively, 91.1% of Callon Petroleum shares are owned by institutional investors. 1.8% of Callon Petroleum shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Africa Energy and Callon Petroleum’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Africa Energy	N/A	N/A	N/A
Callon Petroleum	17.12%	12.65%	7.14%

Valuation & Earnings

This table compares Africa Energy and Callon Petroleum’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Africa Energy	N/A	N/A	N/A	($0.02)	-3.95
Callon Petroleum	$2.34 billion	1.02	$401.20 million	$6.09	5.87

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Africa Energy and Callon Petroleum, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Africa Energy	0	0	0	0	N/A
Callon Petroleum	0	3	3	0	2.50

Callon Petroleum has a consensus price target of $40.33, suggesting a potential upside of 12.79%. Given Callon Petroleum’s higher probable upside, analysts plainly believe Callon Petroleum is more favorable than Africa Energy.

Summary

Callon Petroleum beats Africa Energy on 10 of the 10 factors compared between the two stocks.

About Africa Energy

Africa Energy Corp. operates as an oil and gas exploration and production company in South Africa and Namibia. The company focuses on potential gas condensate development on Block 11B/12B offshore in South Africa. It holds interest in the Block 2B offshore the Republic of South Africa. The company was formerly known as Horn Petroleum Corporation and changed its name to Africa Energy Corp. in March 2015. Africa Energy Corp. is headquartered in Vancouver, Canada.

About Callon Petroleum

Callon Petroleum Company, an independent oil and natural gas company, focuses on the acquisition, exploration, and development of oil and natural gas properties in West Texas. Callon Petroleum Company was founded in 1950 and is headquartered in Houston, Texas.