VOC Energy Trust (NYSE:VOC) & Northern Oil and Gas (NYSE:NOG) Critical Review

VOC Energy Trust (NYSE:VOC) and Northern Oil and Gas (NYSE:NOG) are both energy companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, risk, institutional ownership and dividends.

Volatility & Risk

VOC Energy Trust has a beta of 0.3, indicating that its share price is 70% less volatile than the S&P 500. Comparatively, Northern Oil and Gas has a beta of 0.96, indicating that its share price is 4% less volatile than the S&P 500.

Institutional and Insider Ownership

98.8% of Northern Oil and Gas shares are held by institutional investors. 2.9% of Northern Oil and Gas shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares VOC Energy Trust and Northern Oil and Gas”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
VOC Energy Trust	$13.62 million	4.06	$12.41 million	$0.51	6.37
Northern Oil and Gas	$2.48 billion	1.09	$38.76 million	$0.33	83.76

Northern Oil and Gas has higher revenue and earnings than VOC Energy Trust. VOC Energy Trust 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.

Dividends

VOC Energy Trust pays an annual dividend of $0.36 per share and has a dividend yield of 11.1%. Northern Oil and Gas pays an annual dividend of $1.80 per share and has a dividend yield of 6.5%. VOC Energy Trust pays out 70.6% of its earnings in the form of a dividend. Northern Oil and Gas pays out 545.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Northern Oil and Gas has raised its dividend for 4 consecutive years. VOC Energy Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares VOC Energy Trust and Northern Oil and Gas’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
VOC Energy Trust	87.74%	75.96%	75.96%
Northern Oil and Gas	1.57%	19.74%	8.14%

Analyst Ratings

This is a summary of recent ratings and price targets for VOC Energy Trust and Northern Oil and Gas, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
VOC Energy Trust	1	0	0	0	1.00
Northern Oil and Gas	1	4	3	1	2.44

Northern Oil and Gas has a consensus target price of $29.29, indicating a potential upside of 5.95%. Given Northern Oil and Gas’ stronger consensus rating and higher probable upside, analysts plainly believe Northern Oil and Gas is more favorable than VOC Energy Trust.

Summary

Northern Oil and Gas beats VOC Energy Trust on 11 of the 18 factors compared between the two stocks.

About VOC Energy Trust

VOC Energy Trust acquires and holds a term net profits interest of the net proceeds from production and sale of the interests in oil and natural gas properties in the states of Kansas and Texas. The company has an 80% term net profits interest of the net proceeds on the underlying properties. As of December 31, 2021, its underlying properties had interests in 452.5 net producing wells and 51,147.2 net acres. VOC Energy Trust was incorporated in 2010 and is based in Houston, 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.