Vantage Drilling (NYSE: BTE) and Baytex Energy (NYSE:BTE) are both small-cap oils/energy companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, profitability, valuation, institutional ownership and risk.
Risk and Volatility
Vantage Drilling has a beta of 3.24, suggesting that its share price is 224% more volatile than the S&P 500. Comparatively, Baytex Energy has a beta of 3.1, suggesting that its share price is 210% more volatile than the S&P 500.
Earnings and Valuation
This table compares Vantage Drilling and Baytex Energy’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Vantage Drilling||$212.85 million||0.01||-$149.78 million||N/A||N/A|
|Baytex Energy||$1.42 billion||0.47||$67.24 million||($0.02)||-140.00|
Baytex Energy has higher revenue and earnings than Vantage Drilling.
This table compares Vantage Drilling and Baytex Energy’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional and Insider Ownership
29.7% of Baytex Energy shares are held by institutional investors. 7.5% of Vantage Drilling shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This is a breakdown of current ratings and target prices for Vantage Drilling and Baytex Energy, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Baytex Energy has a consensus target price of $5.00, indicating a potential upside of 78.57%. Given Baytex Energy’s higher possible upside, analysts plainly believe Baytex Energy is more favorable than Vantage Drilling.
Baytex Energy beats Vantage Drilling on 9 of the 11 factors compared between the two stocks.
About Vantage Drilling
Vantage Drilling Company, through its subsidiaries, provides offshore contract drilling services in the United States and internationally. It offers drilling units, related equipment, and work crews under contract to drill oil and natural gas wells. The company also provides construction supervision and operations management services for drilling units owned by others. As of March 6, 2015, it owned a fleet of seven drilling units, including three ultra-deepwater drillships and four ultra-premium jackup rigs. The company primarily serves multinational oil and natural gas companies, government owned oil and natural gas companies, and independent oil and natural gas producers. Vantage Drilling Company was founded in 2007 and is based in Houston, Texas.
About Baytex Energy
Baytex Energy Corp., an oil and gas company, engages in the acquisition, development, and production of oil and natural gas in the Western Canadian Sedimentary Basin and in the Eagle Ford in the United States. It offers heavy oil, heavy gravity crude oil, bitumen, light oil, and natural gas liquids. Its primary oil resource plays include the Eagle Ford in Texas, and the Peace River Oil Sands and Lloydminster heavy oil projects in North America. The company provides 612 million barrels of oil equivalent; bitumen in low estimate to 1,181 million barrels of oil equivalent; and bitumen in the high estimate to 798 million barrels of oil equivalent. Baytex Energy Corp. was founded in 1993 and is headquartered in Calgary, Canada.
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