Reviewing Permex Petroleum (OTCMKTS:OILCF) & Ovintiv (NYSE:OVV)

Permex Petroleum (OTCMKTS:OILCF) and Ovintiv (NYSE:OVV) are both energy companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, institutional ownership, valuation, profitability and risk.

Volatility & Risk

Permex Petroleum has a beta of 2.71, indicating that its share price is 171% more volatile than the S&P 500. Comparatively, Ovintiv has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500.

Valuation and Earnings

This table compares Permex Petroleum and Ovintiv”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Permex Petroleum	$120,000.00	17.51	-$3.99 million	($11.00)	-0.35
Ovintiv	$9.15 billion	1.14	$1.13 billion	$2.35	17.04

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

Analyst Ratings

This is a summary of recent recommendations and price targets for Permex Petroleum and Ovintiv, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Permex Petroleum	0	0	0	0	0.00
Ovintiv	0	2	13	2	3.00

Ovintiv has a consensus price target of $54.47, indicating a potential upside of 36.04%. Given Ovintiv’s stronger consensus rating and higher possible upside, analysts plainly believe Ovintiv is more favorable than Permex Petroleum.

Profitability

This table compares Permex Petroleum and Ovintiv’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Permex Petroleum	-1,332.97%	-145.91%	-53.90%
Ovintiv	6.84%	14.89%	7.85%

Institutional & Insider Ownership

9.5% of Permex Petroleum shares are owned by institutional investors. Comparatively, 83.8% of Ovintiv shares are owned by institutional investors. 0.9% of Ovintiv shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Ovintiv beats Permex Petroleum on 13 of the 15 factors compared between the two stocks.

About Permex Petroleum

Permex Petroleum Corporation, a junior oil and gas company, engages in the acquisition, development, and production of oil and gas properties in the United States. The company holds interests in the Pittcock North property, Pittcock South property, Windy Jones property, and Mary Bullard property located in Stonewall County. It also holds interests in the West Henshaw property located in Eddy County, New Mexico; Oxy Yates property located in Eddy County; and Breedlove B Clearfork property located in Martin Country, Texas. In addition, the company has royalty interests in the Permian Basin of West Texas and southeast New Mexico. Permex Petroleum Corporation was incorporated in 2017 and is headquartered in Dallas, Texas.

About Ovintiv

Ovintiv Inc., together with its subsidiaries, explores, develops, produces, and markets natural gas, oil, and natural gas liquids in the United States and Canada. The company operates through USA Operations, Canadian Operations, and Market Optimization segments. Its principal assets include Permian in west Texas and Anadarko in west-central Oklahoma; and Montney in northeast British Columbia and northwest Alberta. In addition, the company's upstream assets comprise Bakken in northwest North Dakota, and Uinta in central Utah; and Horn River in northeast British Columbia. The company was formerly known as Encana Corporation and changed its name to Ovintiv Inc. in January 2020. Ovintiv Inc. was incorporated in 2020 and is based in Denver, Colorado.