Critical Comparison: Vaalco Energy (EGY) versus Its Rivals

Vaalco Energy (NYSE:EGY) is one of 1,051 public companies in the “Oil, Gas & Consumable Fuels” industry, but how does it weigh in compared to its rivals? We will compare Vaalco Energy to related businesses based on the strength of its earnings, valuation, institutional ownership, dividends, profitability, risk and analyst recommendations.

Earnings and Valuation

This table compares Vaalco Energy and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Vaalco Energy	$359.27 million	-$41.39 million	-3.71
Vaalco Energy Competitors	$11.75 billion	$5.51 billion	-1.06

Vaalco Energy’s rivals have higher revenue and earnings than Vaalco Energy. Vaalco Energy is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares Vaalco Energy and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vaalco Energy	-34.37%	-15.41%	-6.43%
Vaalco Energy Competitors	-455.90%	20.13%	6.34%

Volatility & Risk

Vaalco Energy has a beta of 0.21, suggesting that its share price is 79% less volatile than the S&P 500. Comparatively, Vaalco Energy’s rivals have a beta of -3.75, suggesting that their average share price is 475% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Vaalco Energy and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vaalco Energy	0	2	0	0	2.00
Vaalco Energy Competitors	5982	26995	40851	2423	2.52

Vaalco Energy presently has a consensus price target of $7.30, suggesting a potential upside of 35.56%. As a group, “Oil, Gas & Consumable Fuels” companies have a potential upside of 28.71%. Given Vaalco Energy’s higher probable upside, equities analysts plainly believe Vaalco Energy is more favorable than its rivals.

Dividends

Vaalco Energy pays an annual dividend of $0.25 per share and has a dividend yield of 4.6%. Vaalco Energy pays out -17.2% of its earnings in the form of a dividend. As a group, “Oil, Gas & Consumable Fuels” companies pay a dividend yield of 9.2% and pay out -124.0% of their earnings in the form of a dividend. Vaalco Energy lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Institutional and Insider Ownership

50.3% of Vaalco Energy shares are owned by institutional investors. Comparatively, 30.7% of shares of all “Oil, Gas & Consumable Fuels” companies are owned by institutional investors. 3.0% of Vaalco Energy shares are owned by insiders. Comparatively, 15.5% of shares of all “Oil, Gas & Consumable Fuels” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Vaalco Energy rivals beat Vaalco Energy on 11 of the 15 factors compared.

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.