Advantage Oil & Gas (NYSE: AAV) and Bellatrix Exploration (NYSE:BXE) are both small-cap energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, earnings, profitability, institutional ownership, dividends, analyst recommendations and valuation.
Insider & Institutional Ownership
58.4% of Advantage Oil & Gas shares are owned by institutional investors. Comparatively, 31.3% of Bellatrix Exploration shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
This table compares Advantage Oil & Gas and Bellatrix Exploration’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Advantage Oil & Gas||29.74%||4.08%||3.32%|
This is a summary of recent recommendations for Advantage Oil & Gas and Bellatrix Exploration, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Advantage Oil & Gas||0||2||1||0||2.33|
Advantage Oil & Gas currently has a consensus price target of $10.17, suggesting a potential upside of 238.89%. Bellatrix Exploration has a consensus price target of $3.41, suggesting a potential upside of 152.78%. Given Advantage Oil & Gas’ stronger consensus rating and higher probable upside, analysts plainly believe Advantage Oil & Gas is more favorable than Bellatrix Exploration.
Risk and Volatility
Advantage Oil & Gas has a beta of 0.69, indicating that its stock price is 31% less volatile than the S&P 500. Comparatively, Bellatrix Exploration has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500.
Valuation & Earnings
This table compares Advantage Oil & Gas and Bellatrix Exploration’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Advantage Oil & Gas||$122.28 million||4.56||-$11.88 million||$0.26||11.54|
|Bellatrix Exploration||$172.08 million||0.39||-$20.13 million||($0.85)||-1.59|
Advantage Oil & Gas has higher earnings, but lower revenue than Bellatrix Exploration. Bellatrix Exploration is trading at a lower price-to-earnings ratio than Advantage Oil & Gas, indicating that it is currently the more affordable of the two stocks.
Advantage Oil & Gas beats Bellatrix Exploration on 10 of the 12 factors compared between the two stocks.
Advantage Oil & Gas Company Profile
Advantage Oil & Gas Ltd. is an intermediate natural gas and liquids development and production company. The Company is engaged in the business of natural gas exploitation, development, acquisition and production in the Province of Alberta. The Company focuses on the development of Montney resource play at Glacier, Alberta in Western Canada. The Company has drilled over 10 Montney gas wells. The Glacier property lies along the Alberta side of the border with British Columbia between Grande Prairie, Alberta and Dawson Creek, British Columbia. The primary zones of interest are within the Triassic Montney and Doig formation siltstones. The Glacier property consists of over 90 net sections of land with Doig/Montney interests. It owns and operates a gas plant located at 5-02-76-12W6. It also holds interest in approximately 20 additional sections of Doig/Montney land rights in the Glacier, Valhalla and Wembley area proximal to its existing land holdings.
Bellatrix Exploration Company Profile
Bellatrix Exploration Ltd. is an oil and gas exploration company engaged in the exploration for, and the acquisition, development and production of oil and natural gas reserves in the provinces of Alberta, British Columbia and Saskatchewan. The Company’s properties include Ferrier, Willesden Green, Greater Pembina, Strachan and Harmattan. Ferrier is located over 30 kilometers northwest of Rocky Mountain House, Alberta. The Ferrier and Alder Flats areas produce natural gas and natural gas liquids from the Belly River, Cardium, Notikewin, Falher and Rock Creek zones at depths ranging from 1,800 to 2,700 meters. The Willesden Green area is located approximately 40 kilometers north of Rocky Mountain House, Alberta. Pembina is located over 20 kilometers west of Drayton Valley, Alberta. Strachan is located approximately 10 kilometers south of Rocky Mountain House, Alberta. Harmattan is located approximately 80 kilometers northwest of Calgary near the town of Sundre, Alberta.
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