Comparing U.S. Energy (NASDAQ:USEG) & Mexco Energy (NYSE:MXC)

U.S. Energy (NASDAQ:USEGGet Free Report) and Mexco Energy (NYSE:MXCGet Free Report) are both small-cap oils/energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, risk, earnings, dividends, valuation, analyst recommendations and institutional ownership.

Insider & Institutional Ownership

3.0% of U.S. Energy shares are owned by institutional investors. Comparatively, 5.9% of Mexco Energy shares are owned by institutional investors. 57.6% of U.S. Energy shares are owned by company insiders. Comparatively, 51.0% of Mexco Energy shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
U.S. Energy -100.13% -49.00% -31.08%
Mexco Energy 28.37% 11.61% 10.91%

Analyst Ratings

This is a summary of recent recommendations and price targets for U.S. Energy and Mexco Energy, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
U.S. Energy 0 0 1 0 3.00
Mexco Energy 0 0 0 0 N/A

U.S. Energy presently has a consensus target price of $3.00, suggesting a potential upside of 140.00%. Given U.S. Energy’s higher possible upside, research analysts clearly believe U.S. Energy is more favorable than Mexco Energy.

Volatility & Risk

U.S. Energy has a beta of 0.53, suggesting that its stock price is 47% less volatile than the S&P 500. Comparatively, Mexco Energy has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500.

Earnings & Valuation

This table compares U.S. Energy and Mexco Energy’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
U.S. Energy $32.32 million 0.98 -$32.36 million ($1.28) -0.98
Mexco Energy $7.01 million 3.92 $4.66 million $0.90 14.56

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

Summary

Mexco Energy beats U.S. Energy on 9 of the 13 factors compared between the two stocks.

About U.S. Energy

(Get Free Report)

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 Mexco Energy

(Get Free Report)

Mexco Energy Corporation, an independent oil and gas company, engages in the acquisition, exploration, development, and production of natural gas, crude oil, condensate, and natural gas liquids in the United States. It owns partial interests in approximately 6,400 gross producing wells located in the states of Texas, New Mexico, Oklahoma, Louisiana, Alabama, Mississippi, Arkansas, Wyoming, Kansas, Colorado, Montana, Virginia, North Dakota, and Ohio. It also owned leasehold mineral, royalty, and other interests in approximately 2,768 net acres. The company was formerly known as Miller Oil Company and changed its name to Mexco Energy Corporation in April 1980. Mexco Energy Corporation was incorporated in 1972 and is based in Midland, Texas.

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