Reviewing VAALCO Energy (EGY) and Wildhorse Resource Development (WRD)

VAALCO Energy (NYSE: EGY) and Wildhorse Resource Development (NYSE:WRD) are both oils/energy companies, but which is the better business? We will compare the two companies based on the strength of their dividends, valuation, earnings, analyst recommendations, profitability, institutional ownership and risk.

Valuation and Earnings

This table compares VAALCO Energy and Wildhorse Resource Development’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
VAALCO Energy $59.78 million 0.80 -$26.55 million $0.04 20.25
Wildhorse Resource Development $127.34 million 15.92 -$47.07 million $0.22 91.10

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.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for VAALCO Energy and Wildhorse Resource Development, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
VAALCO Energy 0 1 0 0 2.00
Wildhorse Resource Development 0 1 8 0 2.89

VAALCO Energy presently has a consensus price target of $2.00, suggesting a potential upside of 146.91%. Wildhorse Resource Development has a consensus price target of $20.78, suggesting a potential upside of 3.68%. Given VAALCO Energy’s higher possible upside, analysts plainly believe VAALCO Energy is more favorable than Wildhorse Resource Development.

Profitability

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
VAALCO Energy 3.43% 77.99% 4.27%
Wildhorse Resource Development 8.88% 1.24% 0.68%

Institutional & Insider Ownership

38.0% of VAALCO Energy shares are owned by institutional investors. Comparatively, 95.7% of Wildhorse Resource Development shares are owned by institutional investors. 2.6% of VAALCO Energy shares are owned by insiders. Comparatively, 2.6% of Wildhorse Resource Development shares are owned by 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.

Summary

Wildhorse Resource Development beats VAALCO Energy on 8 of the 12 factors compared between the two stocks.

VAALCO Energy Company Profile

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.

Wildhorse Resource Development Company Profile

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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