Analyzing Zion Oil & Gas (OTCMKTS:ZNOG) & Viper Energy (NASDAQ:VNOM)

Viper Energy (NASDAQ:VNOMGet Free Report) and Zion Oil & Gas (OTCMKTS:ZNOGGet Free Report) are both energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, earnings, profitability, institutional ownership, valuation and risk.

Valuation & Earnings

This table compares Viper Energy and Zion Oil & Gas”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Viper Energy $980.75 million 11.68 $359.24 million $3.46 11.48
Zion Oil & Gas N/A N/A -$7.34 million ($1.77) -0.10

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

Profitability

This table compares Viper Energy and Zion Oil & Gas’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Viper Energy 37.84% 3.92% 3.28%
Zion Oil & Gas N/A -22.49% -20.24%

Risk & Volatility

Viper Energy has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500. Comparatively, Zion Oil & Gas has a beta of 1.7, meaning that its stock price is 70% more volatile than the S&P 500.

Insider & Institutional Ownership

87.7% of Viper Energy shares are held by institutional investors. Comparatively, 7.9% of Zion Oil & Gas shares are held by institutional investors. 0.2% of Viper Energy shares are held by insiders. Comparatively, 2.7% of Zion Oil & Gas shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Viper Energy and Zion Oil & Gas, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Viper Energy 0 0 16 0 3.00
Zion Oil & Gas 0 0 0 0 0.00

Viper Energy presently has a consensus target price of $55.53, suggesting a potential upside of 39.85%. Given Viper Energy’s stronger consensus rating and higher probable upside, equities analysts clearly believe Viper Energy is more favorable than Zion Oil & Gas.

Summary

Viper Energy beats Zion Oil & Gas on 11 of the 13 factors compared between the two stocks.

About Viper Energy

(Get Free Report)

Viper Energy, Inc. engages in the acquisition of oil and natural gas properties. It owns, acquires, and exploits oil and natural gas properties in North America. The company was founded on February 27, 2014 and is headquartered in Midland, TX.

About Zion Oil & Gas

(Get Free Report)

Zion Oil & Gas, Inc., together with its subsidiaries, operates as an oil and gas exploration company in Israel. It holds a petroleum exploration license onshore Israel, the New Megiddo License 434 comprising an area of approximately 75,000 acres. The company was incorporated in 2000 and is headquartered in Dallas, Texas.

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