Head-To-Head Comparison: Vaalco Energy (NYSE:EGY) and Inpex (OTCMKTS:IPXHY)

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

Analyst Ratings

This is a breakdown of current ratings and target prices for Vaalco Energy and Inpex, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vaalco Energy	0	1	0	0	2.00
Inpex	0	0	0	0	0.00

Dividends

Vaalco Energy pays an annual dividend of $0.25 per share and has a dividend yield of 6.1%. Inpex pays an annual dividend of $0.46 per share and has a dividend yield of 2.6%. Vaalco Energy pays out 69.4% of its earnings in the form of a dividend. Inpex pays out 19.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Institutional and Insider Ownership

50.3% of Vaalco Energy shares are owned by institutional investors. Comparatively, 0.0% of Inpex shares are owned by institutional investors. 1.3% of Vaalco Energy shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Volatility & Risk

Vaalco Energy has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500. Comparatively, Inpex has a beta of 0.57, meaning that its stock price is 43% less volatile than the S&P 500.

Profitability

This table compares Vaalco Energy and Inpex’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vaalco Energy	8.26%	4.64%	2.48%
Inpex	20.57%	9.08%	6.19%

Earnings and Valuation

This table compares Vaalco Energy and Inpex”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vaalco Energy	$478.99 million	0.90	$58.49 million	$0.36	11.43
Inpex	$14.99 billion	1.50	$2.70 billion	$2.41	7.46

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

Summary

Inpex beats Vaalco Energy on 8 of the 14 factors compared between the two stocks.

About Vaalco Energy

VAALCO Energy, Inc., an independent energy company, engages in the acquisition, exploration, development, and production of crude oil, natural gas, and natural gas liquids in Gabon, Egypt, Equatorial Guinea, and Canada. The company holds 58.8% interest in the Etame production sharing contract related to the Etame Marin block covering an area of approximately 46,200 gross acres located offshore in the Republic of Gabon in West Africa. It also owns 100% interest in the Eastern Desert, which contains West Gharib, West Bakr and North West Gharib merged concessions covering as area of approximately 45,067 acres, as well as Western Desert, which contains the South Ghazalat concession covering as area of approximately 7,340 acres located in Egypt. In addition, the company production and working interests in Cardium light oil and Mannville liquids-rich gas assets covering as area of 47,400 gross acres located near the north of Calgary, Alberta; and an undeveloped block offshore Equatorial Guinea, West Africa. VAALCO Energy, Inc. was incorporated in 1985 and is headquartered in Houston, Texas.

About Inpex

Inpex Corporation engages in the research, exploration, development, production, and sale of oil, natural gas, and other mineral resources in Japan, rest of Asia and Oceania, Europe and NIS countries, the Middle East and Africa, and the Americas. The company is involved in the investment and lending to the companies engaged in mineral resources business, etc. It also transports natural gas, as well as operates, manages, and maintains gas pipelines. In addition, the company engages in storage of carbon capture related business. Further, it is involved in hydrogen and ammonia, renewable energy, forest conservation, and carbon recycling related businesses. Inpex Corporation was founded in 1966 and is headquartered in Tokyo, Japan.