Advantage Oil & Gas (AAV) versus EV Energy Partners (EVEP) Critical Survey

Advantage Oil & Gas (NYSE: AAV) and EV Energy Partners (NASDAQ:EVEP) are both small-cap energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, valuation, earnings, analyst recommendations, profitability and risk.

Analyst Recommendations

This is a summary of recent ratings for Advantage Oil & Gas and EV Energy Partners, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Advantage Oil & Gas 0 2 1 0 2.33
EV Energy Partners 1 1 0 0 1.50

Advantage Oil & Gas currently has a consensus target price of $10.17, indicating a potential upside of 133.72%. EV Energy Partners has a consensus target price of $1.00, indicating a potential upside of 37.63%. Given Advantage Oil & Gas’ stronger consensus rating and higher possible upside, research analysts clearly believe Advantage Oil & Gas is more favorable than EV Energy Partners.

Profitability

This table compares Advantage Oil & Gas and EV Energy Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Advantage Oil & Gas 27.06% 3.05% 2.48%
EV Energy Partners -118.99% -7.91% -3.64%

Institutional & Insider Ownership

54.8% of Advantage Oil & Gas shares are held by institutional investors. Comparatively, 8.8% of EV Energy Partners shares are held by institutional investors. 10.2% of EV Energy Partners shares are held 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.

Earnings & Valuation

This table compares Advantage Oil & Gas and EV Energy Partners’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Advantage Oil & Gas $122.28 million 6.62 -$11.88 million $0.27 16.11
EV Energy Partners $184.89 million 0.19 -$242.89 million ($5.18) -0.14

Advantage Oil & Gas has higher earnings, but lower revenue than EV Energy Partners. EV Energy Partners is trading at a lower price-to-earnings ratio than Advantage Oil & Gas, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Advantage Oil & Gas has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500. Comparatively, EV Energy Partners has a beta of 1.99, meaning that its share price is 99% more volatile than the S&P 500.

Summary

Advantage Oil & Gas beats EV Energy Partners on 11 of the 14 factors compared between the two stocks.

About Advantage Oil & Gas

Advantage Oil & Gas Ltd. is an intermediate natural gas and liquids development and production company. The Company is engaged in the business of natural gas exploitation, development, acquisition and production in the Province of Alberta. The Company focuses on the development of Montney resource play at Glacier, Alberta in Western Canada. The Company has drilled over 10 Montney gas wells. The Glacier property lies along the Alberta side of the border with British Columbia between Grande Prairie, Alberta and Dawson Creek, British Columbia. The primary zones of interest are within the Triassic Montney and Doig formation siltstones. The Glacier property consists of over 90 net sections of land with Doig/Montney interests. It owns and operates a gas plant located at 5-02-76-12W6. It also holds interest in approximately 20 additional sections of Doig/Montney land rights in the Glacier, Valhalla and Wembley area proximal to its existing land holdings.

About EV Energy Partners

EV Energy Partners, L.P. is engaged in the acquisition, development and production of oil and natural gas properties and all of its operations are located in the United States. The Company’s oil and natural gas properties are located in the Appalachian Basin, which includes the Utica Shale; the San Juan Basin; Michigan; Central Texas, which includes the Austin Chalk area; the Mid-Continent areas in Oklahoma, Texas, Arkansas, Kansas and Louisiana; the Monroe Field in Northern Louisiana, and the Permian Basin. Its activities are concentrated in the Ohio and West Virginia areas of the Appalachian Basin. Its properties are located in Rio Arriba County, New Mexico and La Plata County in Colorado. It owns Eagle Ford oil and natural gas properties in Karnes County, including Eagle Ford and Austin Chalk reserves. It holds interest in approximately 9,150 acres in Karnes County. Its properties are located in the Antrim Shale reservoir in Otsego and Montmorency counties in northern Michigan.

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