Head to Head Contrast: Cardinal Energy (OTCMKTS:CRLFF) & Surge Energy (OTCMKTS:ZPTAF)

Cardinal Energy (OTCMKTS:CRLFF) and Surge Energy (OTCMKTS:ZPTAF) are both energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, profitability, risk, earnings, institutional ownership, analyst recommendations and dividends.

Earnings and Valuation

This table compares Cardinal Energy and Surge Energy”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cardinal Energy	N/A	N/A	N/A	$1.82	2.58
Surge Energy	N/A	N/A	N/A	$0.40	10.13

Cardinal Energy is trading at a lower price-to-earnings ratio than Surge Energy, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Cardinal Energy and Surge Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cardinal Energy	N/A	N/A	N/A
Surge Energy	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent ratings and target prices for Cardinal Energy and Surge Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cardinal Energy	0	0	0	0	0.00
Surge Energy	0	0	1	0	3.00

Surge Energy has a consensus price target of $9.00, indicating a potential upside of 121.18%. Given Surge Energy’s stronger consensus rating and higher possible upside, analysts clearly believe Surge Energy is more favorable than Cardinal Energy.

Insider and Institutional Ownership

44.5% of Cardinal Energy shares are owned by institutional investors. Comparatively, 18.0% of Surge Energy shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Dividends

Cardinal Energy pays an annual dividend of $0.16 per share and has a dividend yield of 3.5%. Surge Energy pays an annual dividend of $0.42 per share and has a dividend yield of 10.4%. Cardinal Energy pays out 8.9% of its earnings in the form of a dividend. Surge Energy pays out 105.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Surge Energy beats Cardinal Energy on 5 of the 8 factors compared between the two stocks.

About Cardinal Energy

Cardinal Energy Ltd. engages in the acquisition, development, optimization, and production of petroleum and natural gas in the provinces of Alberta, British Columbia, and Saskatchewan. Cardinal Energy Ltd. was incorporated in 2010 and is headquartered in Calgary, Canada.

About Surge Energy

Surge Energy Inc. explores, develops, and produces oil and gas in western Canada. Its principal properties are located in the areas of Sparky, Southeast Saskatchewan, Carbonates, Valhalla, and Shaunavon in Alberta and Saskatchewan. The company was formerly known as Zapata Energy Corporation and changed its name to Surge Energy Inc. in June 2010. Surge Energy Inc. was incorporated in 1998 and is headquartered in Calgary, Canada.