Enerflex (NYSE:EFXT) vs. Bonterra Energy (OTCMKTS:BNEFF) Critical Analysis

Enerflex (NYSE:EFXT) and Bonterra Energy (OTCMKTS:BNEFF) are both small-cap energy companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, earnings, dividends and analyst recommendations.

Insider and Institutional Ownership

46.5% of Enerflex shares are held by institutional investors. Comparatively, 0.3% of Bonterra Energy shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Enerflex and Bonterra Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Enerflex	0	1	1	0	2.50
Bonterra Energy	0	0	0	0	0.00

Enerflex currently has a consensus target price of $10.63, indicating a potential upside of 33.15%. Given Enerflex’s stronger consensus rating and higher possible upside, research analysts plainly believe Enerflex is more favorable than Bonterra Energy.

Profitability

This table compares Enerflex and Bonterra Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Enerflex	3.18%	5.23%	1.93%
Bonterra Energy	0.84%	0.41%	0.22%

Valuation and Earnings

This table compares Enerflex and Bonterra Energy”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Enerflex	$2.41 billion	0.41	$32.00 million	$0.59	13.53
Bonterra Energy	$204.33 million	0.48	$7.45 million	$0.05	53.10

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

Volatility & Risk

Enerflex has a beta of 2, suggesting that its stock price is 100% more volatile than the S&P 500. Comparatively, Bonterra Energy has a beta of 1.24, suggesting that its stock price is 24% more volatile than the S&P 500.

Summary

Enerflex beats Bonterra Energy on 11 of the 13 factors compared between the two stocks.

About Enerflex

Enerflex Ltd. offers energy infrastructure and energy transition solutions to natural gas markets in North America, Latin America, and the Eastern Hemisphere. The company provides natural gas compression infrastructure, processing, and treated water infrastructure under contract to oil and natural gas customers; power generation rental solutions; custom and standard compression packages for reciprocating and screw compressor applications; re-engineering, re-configuration, and re-packaging of compressors for various field applications; integrated turnkey power generation, gas compression, processing facilities, natural gas compression, processing, and electric power solutions; after-market mechanical services and parts distribution, as well as maintenance solutions to the oil and natural gas industry, operations, and overhaul services; and equipment supply, parts supply, and general asset management. It also designs, engineers, manufactures, constructs, and installs modular natural gas processing equipment, low-carbon solutions, cryogenic systems, electric power solutions, and treated water solutions; and engages in the engineering, design, procurement, project management, and construction services for compression, process, treated water, and power generation equipment, as well as after-market service, parts, and operations and maintenance services for gas compression, processing, and treated water facilities in the region. The company was formerly known as Enerflex Systems Income Fund and changed its name to Enerflex Ltd. in January 2010. Enerflex Ltd. was founded in 1980 and is headquartered in Calgary, Canada.

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.