Comparing New Concept Energy (NYSE:GBR) & Evolution Petroleum (NYSE:EPM)

Evolution Petroleum (NYSE:EPM) and New Concept Energy (NYSE:GBR) are both small-cap energy companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitability and dividends.

Analyst Ratings

This is a summary of current ratings and recommmendations for Evolution Petroleum and New Concept Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Evolution Petroleum	0	2	3	1	2.83
New Concept Energy	0	0	0	0	0.00

Evolution Petroleum presently has a consensus target price of $5.63, suggesting a potential upside of 74.69%. Given Evolution Petroleum’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Evolution Petroleum is more favorable than New Concept Energy.

Earnings and Valuation

This table compares Evolution Petroleum and New Concept Energy”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Evolution Petroleum	$85.23 million	1.31	$4.08 million	($0.01)	-322.00
New Concept Energy	$153,000.00	25.29	-$20,000.00	($0.02)	-37.70

Evolution Petroleum has higher revenue and earnings than New Concept Energy. Evolution Petroleum is trading at a lower price-to-earnings ratio than New Concept Energy, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

60.1% of Evolution Petroleum shares are held by institutional investors. 10.5% of Evolution Petroleum shares are held by company insiders. Comparatively, 2.1% of New Concept Energy 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.

Profitability

This table compares Evolution Petroleum and New Concept Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Evolution Petroleum	2.04%	2.42%	1.20%
New Concept Energy	-25.85%	-0.83%	-0.82%

Volatility & Risk

Evolution Petroleum has a beta of 0.29, meaning that its share price is 71% less volatile than the S&P 500. Comparatively, New Concept Energy has a beta of -0.04, meaning that its share price is 104% less volatile than the S&P 500.

Summary

Evolution Petroleum beats New Concept Energy on 14 of the 15 factors compared between the two stocks.

About Evolution Petroleum

Evolution Petroleum Corporation, an energy company, engages in the development, production, ownership, and exploitation of onshore oil and gas properties in the United States. The company holds a non-operated interests in the SCOOP and STACK plays located in Central Oklahoma; the Chaveroo Field situated in Chaves and Roosevelt Counties, New Mexico; the Jonah Field located in Sublette County, Wyoming; the Williston Basin situated in Williston, North Dakota; the Barnett Shale field located in North Texas; the Hamilton Dome situated in Hot Springs County, Wyoming; and the Delhi Field, an onshore CO2-EOR project located in northeast Louisiana in Franklin, Madison, and Richland Parishes, as well as small overriding royalty interests in four onshore central Texas wells. The company was founded in 2003 and is based in Houston, Texas.

About New Concept Energy

New Concept Energy, Inc. engages in real estate rental business. The company owns approximately 190 acres of land located in Parkersburg West Virginia. It also provides advisory and management services for an independent oil and gas company. The company was formerly known as CabelTel International Corporation and changed its name to New Concept Energy, Inc. in May 2008. New Concept Energy, Inc. is based in Dallas, Texas.