Reviewing Vermilion Energy (NYSE:VET) & Beach Energy (OTCMKTS:BCHEY)

Vermilion Energy (NYSE:VET) and Beach Energy (OTCMKTS:BCHEY) are both small-cap energy companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, dividends, risk, profitability, analyst recommendations and institutional ownership.

Profitability

This table compares Vermilion Energy and Beach Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vermilion Energy	-1.71%	-1.22%	-0.54%
Beach Energy	N/A	N/A	N/A

Valuation & Earnings

This table compares Vermilion Energy and Beach Energy”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vermilion Energy	$2.11 billion	0.54	-$34.11 million	($0.16)	-45.88
Beach Energy	$1.18 billion	1.68	-$311.70 million	N/A	N/A

Vermilion Energy has higher revenue and earnings than Beach Energy.

Dividends

Vermilion Energy pays an annual dividend of $0.37 per share and has a dividend yield of 5.0%. Beach Energy pays an annual dividend of $0.60 per share and has a dividend yield of 3.4%. Vermilion Energy pays out -231.3% of its earnings in the form of a dividend. Vermilion Energy has increased its dividend for 3 consecutive years. Vermilion Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Vermilion Energy and Beach Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vermilion Energy	0	2	2	0	2.50
Beach Energy	1	1	0	0	1.50

Insider & Institutional Ownership

31.9% of Vermilion Energy shares are owned by institutional investors. 2.6% of Vermilion Energy shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Risk & Volatility

Vermilion Energy has a beta of 1.13, meaning that its stock price is 13% more volatile than the S&P 500. Comparatively, Beach Energy has a beta of 0.56, meaning that its stock price is 44% less volatile than the S&P 500.

Summary

Vermilion Energy beats Beach Energy on 10 of the 14 factors compared between the two stocks.

About Vermilion Energy

Vermilion Energy Inc., together with its subsidiaries, engages in the acquisition, exploration, development, and production of petroleum and natural gas. The company has properties in West Central Alberta, southeast Saskatchewan, Manitoba, and West Pembina in Canada; Wyoming in the United States; southwest Bordeaux and Paris Basin in France; the Netherlands; Germany; Ireland; Croatia; Slovakia; and Australia. The company was founded in 1994 and is headquartered in Calgary, Canada.

About Beach Energy

Beach Energy Limited operates as an oil and gas exploration and production company. It engages in the operated and non-operated, onshore and offshore, and oil and gas production in five producing basins across Australia and New Zealand. The company also explores, develops, produces, and transports hydrocarbons; and sells gas and liquid hydrocarbons. The company was formerly known as Beach Petroleum Limited and changed its name to Beach Energy Limited in December 2009. The company was incorporated in 1961 and is headquartered in Adelaide, Australia.