Head-To-Head Review: Penn West Petroleum (OBE) & Evolution Petroleum Corp (EPM)
Penn West Petroleum (NYSE: OBE) and Evolution Petroleum Corp (NYSE:EPM) are both small-cap oils/energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, risk, dividends, profitabiliy, valuation, earnings and institutional ownership.
Institutional & Insider Ownership
19.7% of Penn West Petroleum shares are held 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.
This is a breakdown of current recommendations for Penn West Petroleum and Evolution Petroleum Corp, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Penn West Petroleum||0||7||1||0||2.13|
|Evolution Petroleum Corp||0||1||3||0||2.75|
Penn West Petroleum currently has a consensus target price of $2.37, indicating a potential upside of 104.31%. Evolution Petroleum Corp has a consensus target price of $10.33, indicating a potential upside of 29.98%. Given Penn West Petroleum’s higher probable upside, analysts clearly believe Penn West Petroleum is more favorable than Evolution Petroleum Corp.
Valuation and Earnings
This table compares Penn West Petroleum and Evolution Petroleum Corp’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Penn West Petroleum||N/A||N/A||N/A||($0.85)||-1.36|
|Evolution Petroleum Corp||$32.89 million||7.90||$18.80 million||N/A||N/A|
Evolution Petroleum Corp has higher revenue and earnings than Penn West Petroleum.
This table compares Penn West Petroleum and Evolution Petroleum Corp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Penn West Petroleum||-95.25%||-22.87%||-14.47%|
|Evolution Petroleum Corp||25.40%||14.11%||11.12%|
Evolution Petroleum Corp beats Penn West Petroleum on 6 of the 8 factors compared between the two stocks.
Penn West Petroleum Company Profile
Obsidian Energy Ltd, formerly Penn West Petroleum Ltd, is a Canada-based conventional oil and natural gas producer and development and production company. The Company operates a portfolio of opportunities with an oil position in the Cardium, Viking and Peace River areas of Alberta. The Alberta Viking area offers a mix of light-oil and gas with high-netback shorter cycle wells to complement longer cycle activities in the Cardium. The Cardium is concentrated on the low-decline and high-netback light-oil production. The Company is focused on an integrated waterflood approach in which it maintain reservoir pressure from the start of production to reduce decline rates on new wells. The Peace River operates in a crude oil resource industry.
Evolution Petroleum Corp Company Profile
Evolution Petroleum Corporation is an independent oil and gas company. The Company is engaged in the acquisition, exploitation and development of properties for the production of crude oil and natural gas, onshore in the United States. Its assets include interests in a carbon dioxide (CO2) enhanced oil recovery project (EOR) in Louisiana’s Delhi field. Its artificial lift technology is Gas Assisted Rod Pump (GARP). The Company tested GARP technology on marginal producing wells that it owns and operates in the Giddings Field. Its mineral interests include Delhi Holt-Bryant Unit in the Delhi field (Unit) located in Northeast Louisiana. As of June 30, 2016, the Unit was approximately 13,636 acres in size. As of June 30, 2016, the Unit produced approximately 195 million barrels of oil through primary and limited secondary recovery operations. As of June 30, 2016, the Unit had produced over 11 million barrels of oil. The Unit is producing as an EOR project utilizing CO2 flood technology.
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