Head to Head Comparison: ZaZa Energy (OTCMKTS:ZAZA) vs. U.S. Energy (NASDAQ:USEG)

U.S. Energy (NASDAQ:USEG) and ZaZa Energy (OTCMKTS:ZAZA) are both energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.

Institutional and Insider Ownership

3.0% of U.S. Energy shares are owned by institutional investors. 61.0% of U.S. Energy shares are owned by insiders. Comparatively, 56.9% of ZaZa Energy shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares U.S. Energy and ZaZa Energy”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
U.S. Energy	$20.62 million	1.71	-$25.78 million	($0.83)	-1.19
ZaZa Energy	N/A	N/A	N/A	N/A	N/A

ZaZa Energy has lower revenue, but higher earnings than U.S. Energy.

Profitability

This table compares U.S. Energy and ZaZa Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
U.S. Energy	-240.93%	-70.53%	-38.35%
ZaZa Energy	N/A	N/A	N/A

Volatility & Risk

U.S. Energy has a beta of 0.46, suggesting that its share price is 54% less volatile than the S&P 500. Comparatively, ZaZa Energy has a beta of -0.75, suggesting that its share price is 175% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for U.S. Energy and ZaZa Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
U.S. Energy	1	0	1	0	2.00
ZaZa Energy	0	0	0	0	0.00

U.S. Energy presently has a consensus target price of $3.50, suggesting a potential upside of 254.83%. Given U.S. Energy’s stronger consensus rating and higher probable upside, equities research analysts clearly believe U.S. Energy is more favorable than ZaZa Energy.

Summary

U.S. Energy beats ZaZa Energy on 7 of the 10 factors compared between the two stocks.

About U.S. Energy

U.S. Energy Corp., an independent energy company, focuses on the acquisition, exploration, and development of oil and natural gas properties in the United States. It holds interests in various oil and gas properties located in the Rockies region, including Montana, Wyoming, and North Dakota; the Mid-Continent region comprising Oklahoma, Kansas, and North and East Texas; West Texas; South Texas; and the Gulf Coast regions. The company was incorporated in 1966 and is headquartered in Houston, Texas.

About ZaZa Energy

ZaZa Energy Corporation, an independent oil and gas company, focuses on the exploration and production of unconventional and conventional oil and gas assets in the United States. The company's properties include the Eagle Ford East Trend comprising approximately 41,000 net acres in Houston, Leon, Madison, Grimes, Walker, Trinity, and Montgomery counties in East Texas; and Eagle Ford Trend covering approximately 3,700 net acres located in DeWitt and Lavaca counties in South Texas. ZaZa Energy Corporation is headquartered in Houston, Texas.