Head to Head Analysis: Advantage Energy (OTCMKTS:AAVVF) and BKV (NYSE:BKV)

Advantage Energy (OTCMKTS:AAVVF) and BKV (NYSE:BKV) are both energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, profitability, earnings, analyst recommendations and risk.

Volatility and Risk

Advantage Energy has a beta of 0.97, indicating that its stock price is 3% less volatile than the S&P 500. Comparatively, BKV has a beta of 1.6, indicating that its stock price is 60% more volatile than the S&P 500.

Insider & Institutional Ownership

7.9% of Advantage Energy shares are owned by institutional investors. 4.1% of BKV shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Advantage Energy and BKV’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Advantage Energy	9.39%	3.75%	2.06%
BKV	5.67%	6.91%	4.59%

Analyst Ratings

This is a breakdown of current recommendations for Advantage Energy and BKV, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Advantage Energy	0	4	2	1	2.57
BKV	0	1	7	1	3.00

BKV has a consensus target price of $31.14, indicating a potential upside of 20.59%. Given BKV’s stronger consensus rating and higher probable upside, analysts plainly believe BKV is more favorable than Advantage Energy.

Valuation and Earnings

This table compares Advantage Energy and BKV”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Advantage Energy	$396.54 million	3.34	$15.85 million	$0.25	31.76
BKV	$580.98 million	4.31	-$142.87 million	$0.52	49.67

Advantage Energy has higher earnings, but lower revenue than BKV. Advantage Energy is trading at a lower price-to-earnings ratio than BKV, indicating that it is currently the more affordable of the two stocks.

Summary

BKV beats Advantage Energy on 11 of the 14 factors compared between the two stocks.

About Advantage Energy

Advantage Energy Ltd., together with its subsidiaries, engages in the acquisition, exploitation, development, and production natural gas, crude oil, and natural gas liquids (NGLs) in the Province of Alberta, Canada. Its assets are located approximately 4 to 80 km northwest of the city of Grande Prairie, Alberta. The company was formerly known as Advantage Oil & Gas Ltd. and changed its name to Advantage Energy Ltd. in May 2021. Advantage Energy Ltd. was founded in 2001 and is headquartered in Calgary, Canada.

About BKV

BKV Corporation engages in the acquisition, operation, and development of natural gas and NGL properties. It is also involved in the gathering, processing, and transportation of natural gas. The company was founded in 2015 and is based in Denver, Colorado with additional offices in Tunkhannock, Pennsylvania and Fort Worth, Texas. BKV Corporation, LLC operates as a subsidiary of Banpu North America Corporation.