Critical Review: FAR (OTCMKTS:FARYF) and Vaalco Energy (NYSE:EGY)

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Vaalco Energy and FAR, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vaalco Energy	0	2	0	0	2.00
FAR	0	0	0	0	0.00

Valuation & Earnings

This table compares Vaalco Energy and FAR”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vaalco Energy	$478.99 million	0.87	$58.49 million	$0.36	11.12
FAR	N/A	N/A	N/A	N/A	N/A

Vaalco Energy has higher revenue and earnings than FAR.

Volatility & Risk

Vaalco Energy has a beta of 0.94, meaning that its stock price is 6% less volatile than the S&P 500. Comparatively, FAR has a beta of 4.49, meaning that its stock price is 349% more volatile than the S&P 500.

Profitability

This table compares Vaalco Energy and FAR’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vaalco Energy	8.26%	4.64%	2.48%
FAR	N/A	N/A	N/A

Institutional and Insider Ownership

50.3% of Vaalco Energy shares are held by institutional investors. 1.7% of Vaalco Energy shares are held by insiders. Comparatively, 1.0% of FAR shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Vaalco Energy beats FAR on 7 of the 8 factors compared between the two stocks.

About Vaalco Energy

VAALCO Energy, Inc., an independent energy company, engages in the acquisition, exploration, development, and production of crude oil, natural gas, and natural gas liquids in Gabon, Egypt, Equatorial Guinea, and Canada. The company holds 58.8% interest in the Etame production sharing contract related to the Etame Marin block covering an area of approximately 46,200 gross acres located offshore in the Republic of Gabon in West Africa. It also owns 100% interest in the Eastern Desert, which contains West Gharib, West Bakr and North West Gharib merged concessions covering as area of approximately 45,067 acres, as well as Western Desert, which contains the South Ghazalat concession covering as area of approximately 7,340 acres located in Egypt. In addition, the company production and working interests in Cardium light oil and Mannville liquids-rich gas assets covering as area of 47,400 gross acres located near the north of Calgary, Alberta; and an undeveloped block offshore Equatorial Guinea, West Africa. VAALCO Energy, Inc. was incorporated in 1985 and is headquartered in Houston, Texas.

About FAR

FAR Limited operates as an oil and gas exploration and development company with primary assets in West Africa and Australia. The company holds a portfolio of exploration licenses in the Gambia and Guinea-Bissau. It also holds a petroleum exploration permit in Western Australia. The company was formerly known as First Australian Resources NL and changed its name to FAR Limited in 2010. FAR Limited was incorporated in 1984 and is based in Melbourne, Australia.