Northern Oil and Gas (NYSE:NOG) & Nordic American Tankers (NYSE:NAT) Critical Survey

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

Profitability

This table compares Northern Oil and Gas and Nordic American Tankers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Northern Oil and Gas	-25.35%	18.69%	6.85%
Nordic American Tankers	47.04%	20.58%	10.38%

Valuation and Earnings

This table compares Northern Oil and Gas and Nordic American Tankers”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Northern Oil and Gas	$2.48 billion	1.15	$38.76 million	($5.18)	-5.15
Nordic American Tankers	$370.40 million	4.06	$12.27 million	$0.59	12.04

Northern Oil and Gas has higher revenue and earnings than Nordic American Tankers. Northern Oil and Gas is trading at a lower price-to-earnings ratio than Nordic American Tankers, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Northern Oil and Gas and Nordic American Tankers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Northern Oil and Gas	2	4	3	0	2.11
Nordic American Tankers	1	2	2	0	2.20

Northern Oil and Gas currently has a consensus price target of $30.62, suggesting a potential upside of 14.89%. Nordic American Tankers has a consensus price target of $5.33, suggesting a potential downside of 24.92%. Given Northern Oil and Gas’ higher probable upside, research analysts plainly believe Northern Oil and Gas is more favorable than Nordic American Tankers.

Institutional and Insider Ownership

98.8% of Northern Oil and Gas shares are owned by institutional investors. Comparatively, 44.3% of Nordic American Tankers shares are owned by institutional investors. 2.8% of Northern Oil and Gas shares are owned by insiders. Comparatively, 2.9% of Nordic American Tankers shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

Northern Oil and Gas pays an annual dividend of $1.80 per share and has a dividend yield of 6.8%. Nordic American Tankers pays an annual dividend of $1.08 per share and has a dividend yield of 15.2%. Northern Oil and Gas pays out -34.7% of its earnings in the form of a dividend. Nordic American Tankers pays out 183.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Northern Oil and Gas has increased its dividend for 4 consecutive years and Nordic American Tankers has increased its dividend for 1 consecutive years.

Volatility & Risk

Northern Oil and Gas has a beta of 0.73, suggesting that its stock price is 27% less volatile than the S&P 500. Comparatively, Nordic American Tankers has a beta of -0.55, suggesting that its stock price is 155% less volatile than the S&P 500.

Summary

Nordic American Tankers beats Northern Oil and Gas on 9 of the 17 factors compared between the two stocks.

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.

About Nordic American Tankers

Nordic American Tankers Limited, a tanker company, acquires and charters double-hull tankers in Bermuda and internationally. It operates a fleet of 20 Suezmax crude oil tankers. The company was incorporated in 1995 and is headquartered in Hamilton, Bermuda.