Advantage Energy (OTCMKTS:AAVVF – Get Free Report) and Riley Exploration Permian (NYSE:REPX – Get Free Report) are both small-cap oils/energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, profitability, valuation, risk, dividends and analyst recommendations.
Risk and Volatility
Advantage Energy has a beta of 1.55, indicating that its share price is 55% more volatile than the S&P 500. Comparatively, Riley Exploration Permian has a beta of 1.46, indicating that its share price is 46% more volatile than the S&P 500.
Insider & Institutional Ownership
7.9% of Advantage Energy shares are owned by institutional investors. Comparatively, 58.9% of Riley Exploration Permian shares are owned by institutional investors. 3.9% of Riley Exploration Permian shares are owned by company 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
Net Margins | Return on Equity | Return on Assets | |
Advantage Energy | 8.62% | 2.88% | 1.78% |
Riley Exploration Permian | 28.48% | 23.82% | 11.31% |
Valuation and Earnings
This table compares Advantage Energy and Riley Exploration Permian”s gross revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Advantage Energy | $400.81 million | 2.86 | $75.26 million | $0.20 | 34.35 |
Riley Exploration Permian | $375.05 million | 2.13 | $111.59 million | $5.64 | 6.58 |
Riley Exploration Permian has lower revenue, but higher earnings than Advantage Energy. Riley Exploration Permian is trading at a lower price-to-earnings ratio than Advantage Energy, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current recommendations for Advantage Energy and Riley Exploration Permian, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Advantage Energy | 0 | 2 | 1 | 0 | 2.33 |
Riley Exploration Permian | 0 | 0 | 1 | 0 | 3.00 |
Advantage Energy presently has a consensus price target of $13.75, indicating a potential upside of 100.15%. Riley Exploration Permian has a consensus price target of $47.00, indicating a potential upside of 26.62%. Given Advantage Energy’s higher probable upside, equities research analysts clearly believe Advantage Energy is more favorable than Riley Exploration Permian.
Summary
Riley Exploration Permian beats Advantage Energy on 8 of the 13 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 Riley Exploration Permian
Riley Exploration Permian, Inc., an independent oil and natural gas company, engages in the acquisition, exploration, development, and production of oil, natural gas, and natural gas liquids in Texas and New Mexico. The company's activities are primarily focused on the Northwest Shelf and Yeso trend of the Permian Basin. Its acreage is primarily located on contiguous blocks in Yoakum County, Texas; and Eddy County, New Mexico. Riley Exploration Permian, Inc. is headquartered in Oklahoma City, Oklahoma.
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