Analyzing Evolution Petroleum (NYSE:EPM) & Pengrowth Energy (OTCMKTS:PGHEF)

Evolution Petroleum (NYSE:EPM) and Pengrowth Energy (OTCMKTS:PGHEF) are both small-cap energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, dividends, risk, valuation, earnings and institutional ownership.

Analyst Recommendations

This is a summary of current recommendations and price targets for Evolution Petroleum and Pengrowth Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Evolution Petroleum	0	1	2	0	2.67
Pengrowth Energy	0	0	0	0	0.00

Evolution Petroleum currently has a consensus price target of $6.10, indicating a potential upside of 26.29%. Given Evolution Petroleum’s stronger consensus rating and higher probable upside, research analysts clearly believe Evolution Petroleum is more favorable than Pengrowth Energy.

Volatility and Risk

Evolution Petroleum has a beta of 0.52, suggesting that its share price is 48% less volatile than the S&P 500. Comparatively, Pengrowth Energy has a beta of 1.99, suggesting that its share price is 99% more volatile than the S&P 500.

Insider and Institutional Ownership

60.1% of Evolution Petroleum shares are owned by institutional investors. Comparatively, 0.5% of Pengrowth Energy shares are owned by institutional investors. 10.1% of Evolution Petroleum shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Evolution Petroleum and Pengrowth Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Evolution Petroleum	2.04%	2.42%	1.20%
Pengrowth Energy	-147.21%	-193.94%	-25.06%

Earnings and Valuation

This table compares Evolution Petroleum and Pengrowth Energy”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Evolution Petroleum	$85.84 million	1.93	$4.08 million	$0.03	161.00
Pengrowth Energy	$408.45 million	0.06	-$431.50 million	N/A	N/A

Evolution Petroleum has higher earnings, but lower revenue than Pengrowth Energy.

Summary

Evolution Petroleum beats Pengrowth Energy on 10 of the 12 factors compared between the two stocks.

About Evolution Petroleum

Evolution Petroleum Corporation, an energy company, engages in the development, production, ownership, and exploitation of onshore oil and gas properties in the United States. The company holds a non-operated interests in the SCOOP and STACK plays located in Central Oklahoma; the Chaveroo Field situated in Chaves and Roosevelt Counties, New Mexico; the Jonah Field located in Sublette County, Wyoming; the Williston Basin situated in Williston, North Dakota; the Barnett Shale field located in North Texas; the Hamilton Dome situated in Hot Springs County, Wyoming; and the Delhi Field, an onshore CO2-EOR project located in northeast Louisiana in Franklin, Madison, and Richland Parishes, as well as small overriding royalty interests in four onshore central Texas wells. The company was founded in 2003 and is based in Houston, Texas.

About Pengrowth Energy

Pengrowth Energy Corporation, a resource company, explores for, develops, and produces oil and natural gas assets in Alberta, British Columbia, Saskatchewan, and Nova Scotia provinces in Canada. The company explores for crude oil, bitumen, natural gas, shale gas, and natural gas liquids. Its principal producing properties are the Lindbergh thermal property covering an area of 20,800 net acres located in Alberta; and Groundbirch property totaling an area of 12,536 net acres located to the south west of Fort St. John, British Columbia. As of December 31, 2018, the company had 269 net producing oil and natural gas wells; and 586 net non-producing wells, as well as total proved plus probable reserves of 446.6 millions of barrels of oil equivalent. Pengrowth Energy Corporation was founded in 1988 and is headquartered in Calgary, Canada.