Vaalco Energy (NYSE:EGY – Get Free Report) and Riley Exploration Permian (NYSE:REPX – Get Free Report) are both small-cap energy companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, profitability, valuation, earnings and risk.
Valuation & Earnings
This table compares Vaalco Energy and Riley Exploration Permian”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Vaalco Energy | $359.27 million | 1.75 | -$41.39 million | ($1.06) | -5.65 |
| Riley Exploration Permian | $483.86 million | 1.92 | $111.59 million | $5.52 | 7.60 |
Dividends
Vaalco Energy pays an annual dividend of $0.25 per share and has a dividend yield of 4.2%. Riley Exploration Permian pays an annual dividend of $1.60 per share and has a dividend yield of 3.8%. Vaalco Energy pays out -23.6% of its earnings in the form of a dividend. Riley Exploration Permian pays out 29.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Riley Exploration Permian has raised its dividend for 3 consecutive years. Vaalco Energy is clearly the better dividend stock, given its higher yield and lower payout ratio.
Profitability
This table compares Vaalco Energy and Riley Exploration Permian’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Vaalco Energy | -31.11% | -14.36% | -6.41% |
| Riley Exploration Permian | 28.48% | 23.82% | 11.31% |
Insider and Institutional Ownership
50.3% of Vaalco Energy shares are held by institutional investors. Comparatively, 58.9% of Riley Exploration Permian shares are held by institutional investors. 3.0% of Vaalco Energy shares are held by company insiders. Comparatively, 4.2% of Riley Exploration Permian shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of current ratings for Vaalco Energy and Riley Exploration Permian, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Vaalco Energy | 1 | 1 | 0 | 0 | 1.50 |
| Riley Exploration Permian | 0 | 1 | 3 | 0 | 2.75 |
Vaalco Energy currently has a consensus price target of $7.30, suggesting a potential upside of 21.87%. Riley Exploration Permian has a consensus price target of $43.00, suggesting a potential upside of 2.55%. Given Vaalco Energy’s higher probable upside, equities research analysts clearly believe Vaalco Energy is more favorable than Riley Exploration Permian.
Risk and Volatility
Vaalco Energy has a beta of 0.14, indicating that its share price is 86% less volatile than the S&P 500. Comparatively, Riley Exploration Permian has a beta of 0.96, indicating that its share price is 4% less volatile than the S&P 500.
Summary
Riley Exploration Permian beats Vaalco Energy on 14 of the 17 factors compared between the two stocks.
About Vaalco Energy
VAALCO Energy, Inc., an independent energy company, engages in the acquisition, exploration, development, and production of crude oil, natural gas, and natural gas liquids in Gabon, Egypt, Equatorial Guinea, and Canada. The company holds 58.8% interest in the Etame production sharing contract related to the Etame Marin block covering an area of approximately 46,200 gross acres located offshore in the Republic of Gabon in West Africa. It also owns 100% interest in the Eastern Desert, which contains West Gharib, West Bakr and North West Gharib merged concessions covering as area of approximately 45,067 acres, as well as Western Desert, which contains the South Ghazalat concession covering as area of approximately 7,340 acres located in Egypt. In addition, the company production and working interests in Cardium light oil and Mannville liquids-rich gas assets covering as area of 47,400 gross acres located near the north of Calgary, Alberta; and an undeveloped block offshore Equatorial Guinea, West Africa. VAALCO Energy, Inc. was incorporated in 1985 and is headquartered in Houston, Texas.
About Riley Exploration Permian
Riley Exploration Permian, Inc., an independent oil and natural gas company, engages in the acquisition, exploration, development, and production of oil, natural gas, and natural gas liquids in Texas and New Mexico. The company's activities are primarily focused on the Northwest Shelf and Yeso trend of the Permian Basin. Its acreage is primarily located on contiguous blocks in Yoakum County, Texas; and Eddy County, New Mexico. Riley Exploration Permian, Inc. is headquartered in Oklahoma City, Oklahoma.
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