YPF Sociedad Anónima (NYSE:YPF) vs. Northern Oil and Gas (NYSE:NOG) Critical Survey

YPF Sociedad Anónima (NYSE:YPF) and Northern Oil and Gas (NYSE:NOG) are both energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.

Volatility & Risk

YPF Sociedad Anónima has a beta of 1.22, indicating that its share price is 22% more volatile than the S&P 500. Comparatively, Northern Oil and Gas has a beta of 0.9, indicating that its share price is 10% less volatile than the S&P 500.

Dividends

YPF Sociedad Anónima pays an annual dividend of $0.14 per share and has a dividend yield of 0.3%. Northern Oil and Gas pays an annual dividend of $1.80 per share and has a dividend yield of 6.4%. YPF Sociedad Anónima pays out 7.3% of its earnings in the form of a dividend. Northern Oil and Gas pays out -34.7% 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. Northern Oil and Gas has increased its dividend for 4 consecutive years. Northern Oil and Gas is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional & Insider Ownership

10.1% of YPF Sociedad Anónima shares are owned by institutional investors. Comparatively, 98.8% of Northern Oil and Gas shares are owned by institutional investors. 2.8% of Northern Oil and Gas shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares YPF Sociedad Anónima and Northern Oil and Gas’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
YPF Sociedad Anónima	3.60%	10.86%	4.20%
Northern Oil and Gas	-25.35%	18.69%	6.85%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for YPF Sociedad Anónima and Northern Oil and Gas, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
YPF Sociedad Anónima	0	3	3	0	2.50
Northern Oil and Gas	2	5	3	0	2.10

YPF Sociedad Anónima currently has a consensus price target of $60.33, suggesting a potential upside of 19.12%. Northern Oil and Gas has a consensus price target of $31.22, suggesting a potential upside of 10.49%. Given YPF Sociedad Anónima’s stronger consensus rating and higher probable upside, research analysts plainly believe YPF Sociedad Anónima is more favorable than Northern Oil and Gas.

Valuation & Earnings

This table compares YPF Sociedad Anónima and Northern Oil and Gas”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
YPF Sociedad Anónima	$20.59 billion	0.97	-$826.00 million	$1.90	26.66
Northern Oil and Gas	$2.16 billion	1.40	$38.76 million	($5.18)	-5.46

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

Summary

Northern Oil and Gas beats YPF Sociedad Anónima on 9 of the 16 factors compared between the two stocks.

About YPF Sociedad Anónima

YPF Sociedad Anónima, an energy company, engages in the oil and gas upstream and downstream activities in Argentina. Its upstream operations include the exploration, exploitation, and production of crude oil, and natural gas. The company’s downstream operations include petrochemical production and crude oil refining; transportation and distribution refined and petrochemical products; commercialization of crude oil, petrochemical products, and specialties. Its gas and power operations include transportation, commercialization, and distribution of natural gas; operation of regasification terminals; conditioning, processing, and separation of natural gas; and power generation. The company had interests in oil and gas fields. It also had a retail distribution network and retail service stations. In addition, the company owns and operates refineries, as well as maintains terminal facilities Argentine ports. Further, it participates in power generation plants; offers diesel, fertilizers, lubricants, phytosanitary products, and ensiling bags; and supplies diesel, gasoline, fuel oil, coal, asphalts, paraffin, and sulfur, CO2, decanted oil, and aromatic extract. The company was incorporated in 1977 and is based in Buenos Aires, Argentina.

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.