Head-To-Head Analysis: Viper Energy Partners (VNOM) and Isramco (ISRL)

Viper Energy Partners (NASDAQ: VNOM) and Isramco (NASDAQ:ISRL) are both oils/energy companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, dividends and analyst recommendations.

Volatility & Risk

Viper Energy Partners has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500. Comparatively, Isramco has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500.

Dividends

Viper Energy Partners pays an annual dividend of $1.84 per share and has a dividend yield of 7.9%. Isramco does not pay a dividend. Viper Energy Partners pays out 173.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Recommendations

This is a summary of current recommendations for Viper Energy Partners and Isramco, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Viper Energy Partners 0 0 11 1 3.08
Isramco 0 0 0 0 N/A

Viper Energy Partners presently has a consensus price target of $25.50, indicating a potential upside of 8.97%. Given Viper Energy Partners’ higher possible upside, research analysts plainly believe Viper Energy Partners is more favorable than Isramco.

Profitability

This table compares Viper Energy Partners and Isramco’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Viper Energy Partners 64.80% 13.92% 13.02%
Isramco 18.37% 156.01% 7.56%

Institutional and Insider Ownership

26.0% of Viper Energy Partners shares are owned by institutional investors. Comparatively, 4.7% of Isramco shares are owned by institutional investors. 73.3% of Isramco shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Viper Energy Partners and Isramco’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Viper Energy Partners $172.03 million 15.49 $111.47 million $1.06 22.08
Isramco $54.94 million 5.07 $6.74 million N/A N/A

Viper Energy Partners has higher revenue and earnings than Isramco.

Summary

Viper Energy Partners beats Isramco on 11 of the 14 factors compared between the two stocks.

Viper Energy Partners Company Profile

Viper Energy Partners LP is engaged in owning, acquiring and exploiting oil and natural gas properties in North America. The Company’s assets are located in the Permian Basin of West Texas. As of December 31, 2016, the Permian Basin consisted of approximately 85,000 square miles. As of December 31, 2016, its assets consisted of mineral interests underlying 107,568 gross acres in the Permian Basin. As of December 31, 2016, there were 545 vertical wells and 190 horizontal wells producing on this acreage. As of December 31, 2016, its estimated proved oil and natural gas reserves of its assets was 31,435 thousand barrels of crude oil equivalent (MBOE). As of December 31, 2016, the Company’s proved reserves were approximately 68% oil, 18% natural gas liquids and 14% natural gas. In addition to its mineral interests, the Company owns a minor equity interest in an entity that owns mineral, overriding royalty, net profits, leasehold and other similar interests.

Isramco Company Profile

Isramco, Inc., together with its subsidiaries, is an independent oil and natural gas company. The Company is engaged in the exploration, development and production of oil and natural gas properties located onshore in the United States and offshore Israel. The Company operates through two segments: Oil and Gas Exploration and Production Segment, and Production services Segment. The Company also operates a production services company that provides a range of onshore production services to oil companies, and independent oil and natural gas production companies conducting operations in the United States. The Oil and Gas Exploration and Production Segment is engaged in the exploration and production of natural gas, crude oil, condensate and natural gas liquids (NGLs). The Production services Segment is engaged in rig-based and workover services, well completion and recompletion services, plugging and abandonment of wells and other ancillary oilfield services.

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