TransGlobe Energy (NASDAQ: TGA) and Memorial Production Partners (NASDAQ:MEMP) are both small-cap oils/energy companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, risk, analyst recommendations, valuation, institutional ownership and profitability.

Earnings and Valuation

This table compares TransGlobe Energy and Memorial Production Partners’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
TransGlobe Energy $122.36 million 0.84 -$87.66 million ($1.54) -0.93
Memorial Production Partners N/A N/A N/A ($6.48) -0.02

Memorial Production Partners has lower revenue, but higher earnings than TransGlobe Energy. TransGlobe Energy is trading at a lower price-to-earnings ratio than Memorial Production Partners, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and target prices for TransGlobe Energy and Memorial Production Partners, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TransGlobe Energy 0 1 2 0 2.67
Memorial Production Partners 0 0 0 0 N/A

TransGlobe Energy currently has a consensus target price of $3.50, indicating a potential upside of 144.76%. Given TransGlobe Energy’s higher probable upside, equities analysts clearly believe TransGlobe Energy is more favorable than Memorial Production Partners.

Dividends

Memorial Production Partners pays an annual dividend of $0.06 per share and has a dividend yield of 46.2%. TransGlobe Energy does not pay a dividend. Memorial Production Partners pays out -0.9% of its earnings in the form of a dividend.

Profitability

This table compares TransGlobe Energy and Memorial Production Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TransGlobe Energy -83.42% -7.08% -4.70%
Memorial Production Partners -395.31% -496.55% -58.07%

Institutional & Insider Ownership

22.4% of TransGlobe Energy shares are owned by institutional investors. Comparatively, 5.5% of Memorial Production Partners shares are owned by institutional investors. 4.0% of TransGlobe Energy shares are owned by insiders. Comparatively, 1.5% of Memorial Production Partners shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

TransGlobe Energy beats Memorial Production Partners on 9 of the 11 factors compared between the two stocks.

About TransGlobe Energy

TransGlobe Energy Corporation is an oil exploration and production company. The Company’s activities are concentrated in the Arab Republic of Egypt (Egypt). The Company conducts its operations through the Arab Republic of Egypt segment. The Company is primarily engaged in oil exploration, development, production and the acquisition of properties. It holds interests in various production sharing concessions (PSC) in Eastern Desert Egypt and Western Desert Egypt. Its blocks in Eastern Desert Egypt include West Gharib, which covers approximately 34,860 acres; West Bakr, covering over 11,600 acres; North West (NW) Gharib, covering approximately 162,000 acres; South East (SE) Gharib, which covers over 125,650 acres, and South West (SW) Gharib, covering approximately 48,310 acres. Its blocks in the Western Desert Egypt include South Alamein, covering approximately 335,830 acres; South Ghazalat, covering over 465,300 acres, and North West (NW) Sitra, covering approximately 480,850 acres.

About Memorial Production Partners

Memorial Production Partners LP (the Partnership) owns, acquires and exploits oil and natural gas properties in North America. The Partnership is owned by its limited partners and general partner. Its general partner is responsible for managing all of the Partnership’s operations and activities. The Partnership operates in the acquisition, exploitation, development and production of oil and natural gas properties segment. Its business activities are conducted through Memorial Production Operating LLC (OLLC) and its wholly owned subsidiaries. Its assets consist primarily of producing oil and natural gas properties, and are located in East Texas/Louisiana, Rockies, Offshore Southern California, Permian Basin and South Texas. Most of its oil and natural gas properties are located in oil and natural gas reservoirs with geologic characteristics and production profiles and capital requirements.

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