Contrasting Evolution Petroleum (NYSE:EPM) and Riverdale Oil and Gas (OTCMKTS:RVDO)

Riverdale Oil and Gas (OTCMKTS:RVDO) and Evolution Petroleum (NYSE:EPM) are both small-cap energy companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, risk, valuation, earnings, dividends and profitability.

Earnings and Valuation

This table compares Riverdale Oil and Gas and Evolution Petroleum”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Riverdale Oil and Gas	N/A	N/A	N/A	N/A	N/A
Evolution Petroleum	$85.23 million	1.66	$4.08 million	($0.01)	-408.00

Evolution Petroleum has higher revenue and earnings than Riverdale Oil and Gas.

Analyst Ratings

This is a summary of recent ratings for Riverdale Oil and Gas and Evolution Petroleum, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Riverdale Oil and Gas	0	0	0	0	0.00
Evolution Petroleum	0	2	3	0	2.60

Evolution Petroleum has a consensus price target of $5.73, suggesting a potential upside of 40.52%. Given Evolution Petroleum’s stronger consensus rating and higher probable upside, analysts plainly believe Evolution Petroleum is more favorable than Riverdale Oil and Gas.

Insider & Institutional Ownership

60.1% of Evolution Petroleum shares are held by institutional investors. 28.1% of Riverdale Oil and Gas shares are held by company insiders. Comparatively, 10.5% of Evolution Petroleum shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

Riverdale Oil and Gas has a beta of -8.49, meaning that its share price is 949% less volatile than the S&P 500. Comparatively, Evolution Petroleum has a beta of 0.26, meaning that its share price is 74% less volatile than the S&P 500.

Profitability

This table compares Riverdale Oil and Gas and Evolution Petroleum’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Riverdale Oil and Gas	N/A	N/A	N/A
Evolution Petroleum	2.04%	2.42%	1.20%

Summary

Evolution Petroleum beats Riverdale Oil and Gas on 9 of the 10 factors compared between the two stocks.

About Riverdale Oil and Gas

Riverdale Oil and Gas Corporation produces oil and gas in the United States. The company was founded in 2005 and is headquartered in Austin, Texas.

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.