Financial Analysis: Enerflex (NYSE:EFXT) versus Paradigm Oil and Gas (OTCMKTS:PDGO)

Paradigm Oil and Gas (OTCMKTS:PDGO) and Enerflex (NYSE:EFXT) are both energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, valuation, dividends, profitability, risk and analyst recommendations.

Volatility and Risk

Paradigm Oil and Gas has a beta of -0.19, indicating that its share price is 119% less volatile than the S&P 500. Comparatively, Enerflex has a beta of 2, indicating that its share price is 100% more volatile than the S&P 500.

Institutional & Insider Ownership

46.5% of Enerflex shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Paradigm Oil and Gas and Enerflex”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Paradigm Oil and Gas	N/A	N/A	-$1.66 million	N/A	N/A
Enerflex	$2.41 billion	0.41	$32.00 million	$0.59	13.58

Enerflex has higher revenue and earnings than Paradigm Oil and Gas.

Analyst Ratings

This is a breakdown of current ratings and price targets for Paradigm Oil and Gas and Enerflex, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Paradigm Oil and Gas	0	0	0	0	0.00
Enerflex	0	1	1	0	2.50

Enerflex has a consensus target price of $10.63, suggesting a potential upside of 32.60%. Given Enerflex’s stronger consensus rating and higher possible upside, analysts clearly believe Enerflex is more favorable than Paradigm Oil and Gas.

Profitability

This table compares Paradigm Oil and Gas and Enerflex’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Paradigm Oil and Gas	N/A	N/A	N/A
Enerflex	3.18%	5.23%	1.93%

Summary

Enerflex beats Paradigm Oil and Gas on 10 of the 10 factors compared between the two stocks.

About Paradigm Oil and Gas

Paradigm Oil and Gas, Inc., an exploration stage company, engages in the acquisition, exploration, development, and operation of oil and gas properties. It holds interests in 4 oil and gas leases covering approximately 934 net mineral acres located in the Wichita and Navarro counties of Texas. The company is headquartered in Indian Rocks Beach, Florida.

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.