VAALCO Energy (NYSE: EGY) and Wildhorse Resource Development (NYSE:WRD) are both small-cap oils/energy companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, earnings, valuation, institutional ownership, risk, profitability and analyst recommendations.
Earnings and Valuation
This table compares VAALCO Energy and Wildhorse Resource Development’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|VAALCO Energy||$59.78 million||0.79||-$26.55 million||$0.04||20.08|
|Wildhorse Resource Development||$127.34 million||12.46||-$47.07 million||$0.22||71.28|
VAALCO Energy has higher earnings, but lower revenue than Wildhorse Resource Development. VAALCO Energy is trading at a lower price-to-earnings ratio than Wildhorse Resource Development, indicating that it is currently the more affordable of the two stocks.
This table compares VAALCO Energy and Wildhorse Resource Development’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Wildhorse Resource Development||8.88%||1.24%||0.68%|
This is a breakdown of current ratings and recommmendations for VAALCO Energy and Wildhorse Resource Development, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Wildhorse Resource Development||0||1||7||0||2.88|
VAALCO Energy presently has a consensus price target of $2.00, suggesting a potential upside of 149.00%. Wildhorse Resource Development has a consensus price target of $20.13, suggesting a potential upside of 28.35%. Given VAALCO Energy’s higher possible upside, equities research analysts clearly believe VAALCO Energy is more favorable than Wildhorse Resource Development.
Institutional & Insider Ownership
38.0% of VAALCO Energy shares are held by institutional investors. Comparatively, 95.8% of Wildhorse Resource Development shares are held by institutional investors. 2.6% of VAALCO Energy shares are held by company insiders. Comparatively, 2.6% of Wildhorse Resource Development shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Volatility & Risk
VAALCO Energy has a beta of 0.53, meaning that its stock price is 47% less volatile than the S&P 500. Comparatively, Wildhorse Resource Development has a beta of -0.48, meaning that its stock price is 148% less volatile than the S&P 500.
Wildhorse Resource Development beats VAALCO Energy on 8 of the 13 factors compared between the two stocks.
About VAALCO Energy
VAALCO Energy, Inc. is an independent energy company. The Company is engaged in the acquisition, exploration, development and production of crude oil and natural gas. Its segments include Gabon, Angola, Equatorial Guinea, the United States, and Corporate and other, which includes corporate and operations support. It owns producing properties and conducts exploration activities as an operator in Gabon, West Africa; conducts exploration activities as an operator in Angola, West Africa, and participates in exploration and development activities as a non-operator in Equatorial Guinea, West Africa. In the United States, it operates unconventional resource properties in North Texas and hold undeveloped leasehold acreage in Montana. It also owns minor interests in conventional production activities as a non-operator in the United States. Its Etame Marin block is located offshore the Republic of Gabon. It owns over 640-acre lease in the Hefley field (Granite Wash formation) in North Texas.
About Wildhorse Resource Development
WildHorse Resource Development Corporation is a holding company. The Company is an independent oil and natural gas company. The Company is focused on the acquisition, exploitation, exploration and development of oil, natural gas and natural gas liquid (NGL) resources in the United States. Its assets are characterized by concentrated acreage positions in Southeast Texas and North Louisiana with multiple producing stratigraphic horizons, or stacked pay zones, and single-well rates of return. In Southeast Texas, it operates in Burleson, Lee and Washington Counties where it primarily targets the Eagle Ford Shale (Eagle Ford Acreage), which is an active shale trends in North America. In North Louisiana, the Company operates in and around the Terryville Complex, where it primarily targets the overpressured Cotton Valley play (North Louisiana Acreage). The Company’s subsidiaries include WildHorse Resources II, LLC (WildHorse) and Esquisto and Acquisition Co.
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