Head-To-Head Contrast: Zion Oil & Gas (OTCMKTS:ZNOG) vs. Northern Oil and Gas (NYSE:NOG)

Zion Oil & Gas (OTCMKTS:ZNOG) and Northern Oil and Gas (NYSE:NOG) are both energy companies, but which is the better stock? We will compare the two companies based on the strength of their risk, institutional ownership, analyst recommendations, earnings, dividends, valuation and profitability.

Risk and Volatility

Zion Oil & Gas has a beta of 1.54, suggesting that its share price is 54% more volatile than the S&P 500. Comparatively, Northern Oil and Gas has a beta of 1.61, suggesting that its share price is 61% more volatile than the S&P 500.

Insider & Institutional Ownership

7.9% of Zion Oil & Gas shares are owned by institutional investors. Comparatively, 98.8% of Northern Oil and Gas shares are owned by institutional investors. 2.7% of Zion Oil & Gas shares are owned by company insiders. Comparatively, 2.9% of Northern Oil and Gas shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Zion Oil & Gas and Northern Oil and Gas, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Zion Oil & Gas	0	0	0	0	0.00
Northern Oil and Gas	1	5	4	1	2.45

Northern Oil and Gas has a consensus price target of $34.25, suggesting a potential upside of 59.97%. Given Northern Oil and Gas’ stronger consensus rating and higher probable upside, analysts clearly believe Northern Oil and Gas is more favorable than Zion Oil & Gas.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Zion Oil & Gas	N/A	-22.49%	-20.24%
Northern Oil and Gas	23.62%	22.12%	9.49%

Earnings and Valuation

This table compares Zion Oil & Gas and Northern Oil and Gas”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Zion Oil & Gas	N/A	N/A	-$7.34 million	($1.77)	-0.11
Northern Oil and Gas	$2.22 billion	0.94	$520.31 million	$6.06	3.53

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

Summary

Northern Oil and Gas beats Zion Oil & Gas on 14 of the 14 factors compared between the two stocks.

About Zion Oil & Gas

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.

About Northern Oil and Gas

Northern Oil and Gas, Inc., an independent energy company, engages in the acquisition, exploration, exploitation, development, and production of crude oil and natural gas properties in the United States. It primarily holds interests in the Williston Basin, the Appalachian Basin, and the Permian Basin in the United States. The company is based in Minnetonka, Minnesota.