Vermilion Energy (NYSE:VET) vs. Inpex (OTCMKTS:IPXHY) Head to Head Analysis

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

Institutional & Insider Ownership

0.0% of Inpex shares are held by institutional investors. Comparatively, 31.9% of Vermilion Energy shares are held by institutional investors. 2.6% of Vermilion Energy shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Inpex and Vermilion Energy”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Inpex	$14.99 billion	1.48	$2.70 billion	$2.41	7.37
Vermilion Energy	$1.45 billion	0.83	-$34.11 million	($0.87)	-9.00

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

Analyst Ratings

This is a breakdown of recent recommendations for Inpex and Vermilion Energy, as provided by MarketBeat.com.

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

Volatility and Risk

Inpex has a beta of 0.58, suggesting that its stock price is 42% less volatile than the S&P 500. Comparatively, Vermilion Energy has a beta of 1.27, suggesting that its stock price is 27% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Inpex	20.57%	9.08%	6.19%
Vermilion Energy	-9.29%	0.17%	0.07%

Dividends

Inpex pays an annual dividend of $0.46 per share and has a dividend yield of 2.6%. Vermilion Energy pays an annual dividend of $0.38 per share and has a dividend yield of 4.9%. Inpex pays out 19.1% of its earnings in the form of a dividend. Vermilion Energy pays out -43.7% 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. 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.

About Inpex

Inpex Corporation engages in the research, exploration, development, production, and sale of oil, natural gas, and other mineral resources in Japan, rest of Asia and Oceania, Europe and NIS countries, the Middle East and Africa, and the Americas. The company is involved in the investment and lending to the companies engaged in mineral resources business, etc. It also transports natural gas, as well as operates, manages, and maintains gas pipelines. In addition, the company engages in storage of carbon capture related business. Further, it is involved in hydrogen and ammonia, renewable energy, forest conservation, and carbon recycling related businesses. Inpex Corporation was founded in 1966 and is headquartered in Tokyo, Japan.

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.