Financial Review: Paramount Resources (PRMRF) vs. NXT Energy Solutions (NSFDF)

Paramount Resources (OTCMKTS:PRMRF) and NXT Energy Solutions (OTCMKTS:NSFDF) are both small-cap oils/energy companies, but which is the better business? We will compare the two companies based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.

Profitability

This table compares Paramount Resources and NXT Energy Solutions’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Paramount Resources -10.87% -10.56% -5.01%
NXT Energy Solutions N/A -34.97% -31.33%

Institutional & Insider Ownership

0.6% of Paramount Resources shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility & Risk

Paramount Resources has a beta of 2.63, suggesting that its stock price is 163% more volatile than the S&P 500. Comparatively, NXT Energy Solutions has a beta of 0.36, suggesting that its stock price is 64% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Paramount Resources and NXT Energy Solutions, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Paramount Resources 0 1 1 0 2.50
NXT Energy Solutions 0 0 0 0 N/A

Earnings & Valuation

This table compares Paramount Resources and NXT Energy Solutions’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Paramount Resources $378.91 million 2.27 $141.44 million N/A N/A
NXT Energy Solutions $1.09 million 27.68 -$6.91 million N/A N/A

Paramount Resources has higher revenue and earnings than NXT Energy Solutions.

Summary

Paramount Resources beats NXT Energy Solutions on 7 of the 9 factors compared between the two stocks.

About Paramount Resources

Paramount Resources Ltd., an independent energy company, explores for, develops, produces, and markets natural gas, crude oil, and natural gas liquids in Canada. Its principal properties are located in Alberta and British Columbia. The company also invests in public and private corporations. Paramount Resources Ltd. was founded in 1978 and is based in Calgary, Canada.

About NXT Energy Solutions

NXT Energy Solutions Inc. provides airborne and gravity based geophysical survey services for the oil and gas exploration and production companies through its proprietary stress field detection (SFD) survey system worldwide. Its SFD remote-sensing survey system offers information on areas conducive to fluid entrapment in the sedimentary column. The company was formerly known as Energy Exploration Technologies Inc. and changed its name to NXT Energy Solutions Inc. in September 2008. NXT Energy Solutions Inc. was founded in 1994 and is headquartered in Calgary, Canada.

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