Epiroc AB (publ) (OTCMKTS:EPOKY) vs. Bonterra Energy (OTCMKTS:BNEFF) Financial Analysis

Bonterra Energy (OTCMKTS:BNEFF) and Epiroc AB (publ) (OTCMKTS:EPOKY) are both oils/energy companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, earnings, dividends, risk and analyst recommendations.

Profitability

This table compares Bonterra Energy and Epiroc AB (publ)’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Bonterra Energy	12.63%	7.36%	3.93%
Epiroc AB (publ)	13.96%	22.19%	11.81%

Institutional and Insider Ownership

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

Earnings and Valuation

This table compares Bonterra Energy and Epiroc AB (publ)’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Bonterra Energy	$236.68 million	0.53	$33.29 million	$0.75	4.47
Epiroc AB (publ)	$5.69 billion	4.11	$889.34 million	$0.72	26.78

Epiroc AB (publ) has higher revenue and earnings than Bonterra Energy. Bonterra Energy is trading at a lower price-to-earnings ratio than Epiroc AB (publ), indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and target prices for Bonterra Energy and Epiroc AB (publ), as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Bonterra Energy	0	0	0	0	N/A
Epiroc AB (publ)	1	2	0	0	1.67

Dividends

Bonterra Energy pays an annual dividend of $0.09 per share and has a dividend yield of 2.7%. Epiroc AB (publ) pays an annual dividend of $0.20 per share and has a dividend yield of 1.0%. Bonterra Energy pays out 12.0% of its earnings in the form of a dividend. Epiroc AB (publ) pays out 27.8% 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. Bonterra Energy is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility and Risk

Bonterra Energy has a beta of 2.01, suggesting that its share price is 101% more volatile than the S&P 500. Comparatively, Epiroc AB (publ) has a beta of 1.55, suggesting that its share price is 55% more volatile than the S&P 500.

Summary

Epiroc AB (publ) beats Bonterra Energy on 7 of the 12 factors compared between the two stocks.

About Bonterra Energy

Bonterra Energy Corp., a conventional oil and gas company, engages in the development and production of oil and natural gas in Canada. Its principal properties include Pembina Cardium, a conventional oil field, at the Pembina and Willesden green fields located in central Alberta; and holds 100% interest in the Montney properties that consist of approximately 28,880 acres located in the north of Grand Prairie, Alberta. The company was incorporated in 2013 and is headquartered in Calgary, Canada.

About Epiroc AB (publ)

Epiroc AB (publ), together with its subsidiaries, develops and produces equipment for use in surface and underground applications in North America, Europe, South America, Europe, Africa, the Middle East, Asia, and Australia. It operates in two segments, Equipment & Service, and Tools & Attachments. The Equipment & Service segment provides equipment and solutions for rock drilling, rock excavation, rock reinforcement, loading and haulage, and ventilation systems, as well as drilling equipment for exploration, and water and energy; and related spare parts and services for the mining and infrastructure industries. This segment offers solutions for automation, digitalization, and electrification. The Tools & Attachments segment provides consumables for rock drilling, such as drill bits and drill rods, as well as tools for exploration drilling and rock reinforcement; ground engaging tools, such as cast lips, teeth, and protective shrouds, as well as digital solutions for the mining industry; and hydraulic attachments, including hydraulic breakers, shears and pulverizers, concrete cutters and busters, drum cutters, excavator grapples, excavator magnets, hydraulic compactors, crusher and screening buckets, auger drive units, and couplers and thumbs, as well as HATCON that is a remote monitoring tool. In addition, the company offers aftermarket services, including new circular services, productivity-enhancing technology-agnostic digital solutions, mid-life upgrades, diesel-to-battery conversions, and remanufacturing of components. Epiroc AB (publ) was founded in 1873 and is headquartered in Nacka, Sweden.