Financial Analysis: Vermilion Energy (NYSE:VET) versus Kunlun Energy (OTCMKTS:KLYCY)

Kunlun Energy (OTCMKTS:KLYCY) and Vermilion Energy (NYSE:VET) are both energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, dividends, institutional ownership and risk.

Earnings & Valuation

This table compares Kunlun Energy and Vermilion Energy”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kunlun Energy	$26.02 billion	0.33	$829.04 million	N/A	N/A
Vermilion Energy	$1.45 billion	0.87	-$34.11 million	($0.16)	-50.97

Kunlun Energy has higher revenue and earnings than Vermilion Energy.

Risk and Volatility

Kunlun Energy has a beta of 0.44, suggesting that its stock price is 56% less volatile than the S&P 500. Comparatively, Vermilion Energy has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Kunlun Energy and Vermilion Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kunlun Energy	0	0	0	0	0.00
Vermilion Energy	0	2	2	0	2.50

Institutional and Insider Ownership

31.9% of Vermilion Energy shares are owned by institutional investors. 2.6% of Vermilion Energy shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kunlun Energy	N/A	N/A	N/A
Vermilion Energy	-1.71%	-1.22%	-0.54%

Dividends

Kunlun Energy pays an annual dividend of $0.32 per share and has a dividend yield of 3.2%. Vermilion Energy pays an annual dividend of $0.36 per share and has a dividend yield of 4.4%. Vermilion Energy pays out -225.0% of its earnings in the form of a dividend. Vermilion Energy has increased its dividend for 3 consecutive years. Vermilion Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Vermilion Energy beats Kunlun Energy on 9 of the 14 factors compared between the two stocks.

About Kunlun Energy

Kunlun Energy Company Limited, an investment holding company, engages in the exploration, development, production, and sale of crude oil and natural gas. It operates through four segments: Natural Gas Sales; Sales of Liquefied Petroleum Gas (LPG); Liquefied Natural Gas (LNG) Processing and Terminal; and Exploration and Production. The company is also involved in the processing, unloading, storing, gasification, and entrucking of LNG; trading, distribution, and retail sale of various natural gas products; and wholesale and retail of various LPG products. It operates in the People's Republic of China, the Republic of Kazakhstan, the Sultanate of Oman, the Republic of Peru, and the Kingdom of Thailand. The company was formerly known as CNPC (Hong Kong) Limited and changed its name to Kunlun Energy Company Limited in March 2010. The company was incorporated in 1991 and is based in Hong Kong, Hong Kong. Kunlun Energy Company Limited operates as a subsidiary of PetroChina Hong Kong Limited.

About Vermilion Energy

Vermilion Energy Inc., together with its subsidiaries, engages in the acquisition, exploration, development, and production of petroleum and natural gas. The company has properties in West Central Alberta, southeast Saskatchewan, Manitoba, and West Pembina in Canada; Wyoming in the United States; southwest Bordeaux and Paris Basin in France; the Netherlands; Germany; Ireland; Croatia; Slovakia; and Australia. The company was founded in 1994 and is headquartered in Calgary, Canada.