Enduro Royalty Trust (NYSE: NDRO) and Advantage Oil & Gas (NYSE:AAV) are both small-cap oil & gas exploration and production – nec companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, institutional ownership and risk.
Volatility and Risk
Enduro Royalty Trust has a beta of 0.45, suggesting that its share price is 55% less volatile than the S&P 500. Comparatively, Advantage Oil & Gas has a beta of 0.86, suggesting that its share price is 14% less volatile than the S&P 500.
Enduro Royalty Trust pays an annual dividend of $0.20 per share and has a dividend yield of 6.2%. Advantage Oil & Gas does not pay a dividend. Enduro Royalty Trust pays out 66.7% of its earnings in the form of a dividend.
This is a breakdown of current ratings and recommmendations for Enduro Royalty Trust and Advantage Oil & Gas, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Enduro Royalty Trust||0||1||0||0||2.00|
|Advantage Oil & Gas||0||2||1||0||2.33|
Enduro Royalty Trust currently has a consensus price target of $4.00, indicating a potential upside of 23.08%. Advantage Oil & Gas has a consensus price target of $10.17, indicating a potential upside of 194.69%. Given Advantage Oil & Gas’ stronger consensus rating and higher probable upside, analysts plainly believe Advantage Oil & Gas is more favorable than Enduro Royalty Trust.
Valuation & Earnings
This table compares Enduro Royalty Trust and Advantage Oil & Gas’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Enduro Royalty Trust||$39.87 million||2.69||$8.48 million||$0.30||10.83|
|Advantage Oil & Gas||$122.28 million||5.25||-$11.88 million||$0.28||12.32|
Enduro Royalty Trust has higher earnings, but lower revenue than Advantage Oil & Gas. Enduro Royalty Trust 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.
This table compares Enduro Royalty Trust and Advantage Oil & Gas’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Enduro Royalty Trust||28.20%||9.68%||9.68%|
|Advantage Oil & Gas||27.06%||3.05%||2.48%|
Institutional & Insider Ownership
57.5% of Enduro Royalty Trust shares are held by institutional investors. Comparatively, 54.8% of Advantage Oil & Gas shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Advantage Oil & Gas beats Enduro Royalty Trust on 8 of the 15 factors compared between the two stocks.
About Enduro Royalty Trust
Enduro Royalty Trust (the Trust) is a statutory trust formed by Enduro Resource Partners LLC (Enduro), as trustor, The Bank of New York Mellon Trust Company, N.A. (the Trustee), as trustee, and Wilmington Trust Company (the Delaware Trustee), as Delaware Trustee. The Trust was created to acquire and hold for the benefit of the Trust unitholders a net profits interest representing the right to receive approximately 80% of the net profits from the sale of oil and natural gas production from certain properties in the states of Texas, Louisiana and New Mexico held by Enduro as of the date of the conveyance of the net profits interest to the Trust (the Net Profits Interest). The properties in which the Trust holds the Net Profits Interest are referred to as the Underlying Properties. Enduro is engaged in the production and development of oil and natural gas. The Underlying Properties comprises producing and non-producing interests in oil and natural gas units, wells and lands.
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.
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