Head to Head Review: ERHC Energy (OTCMKTS:ERHE) vs. Northern Oil and Gas (NYSE:NOG)

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

Earnings & Valuation

This table compares ERHC Energy and Northern Oil and Gas”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ERHC Energy	N/A	N/A	N/A	N/A	N/A
Northern Oil and Gas	$2.22 billion	1.02	$520.31 million	$6.06	3.82

Northern Oil and Gas has higher revenue and earnings than ERHC Energy.

Analyst Ratings

This is a summary of current recommendations and price targets for ERHC Energy and Northern Oil and Gas, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ERHC Energy	0	0	0	0	0.00
Northern Oil and Gas	1	5	4	1	2.45

Northern Oil and Gas has a consensus target price of $34.38, indicating a potential upside of 48.42%. Given Northern Oil and Gas’ stronger consensus rating and higher possible upside, analysts clearly believe Northern Oil and Gas is more favorable than ERHC Energy.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ERHC Energy	N/A	N/A	N/A
Northern Oil and Gas	23.62%	22.12%	9.49%

Volatility & Risk

ERHC Energy has a beta of -5.99, indicating that its stock price is 699% less volatile than the S&P 500. Comparatively, Northern Oil and Gas has a beta of 1.61, indicating that its stock price is 61% more volatile than the S&P 500.

Insider and Institutional Ownership

98.8% of Northern Oil and Gas shares are held by institutional investors. 4.9% of ERHC Energy shares are held by insiders. Comparatively, 2.9% of Northern Oil and Gas shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Northern Oil and Gas beats ERHC Energy on 10 of the 11 factors compared between the two stocks.

About ERHC Energy

ERHC Energy Inc. engages in the exploration and exploitation of oil and gas resources in Africa. Its principal assets include the rights to working interests in exploration acreage in the Republic of Kenya; the Republic of Chad; the Joint Development Zone between the Democratic Republic of Sao Tome and Principe; the Federal Republic of Nigeria; and the economic zone of Sao Tome. The company was founded in 1986 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.