Advantage Energy (OTCMKTS:AAVVF) and Uranium Royalty (NASDAQ:UROY) Critical Contrast

Advantage Energy (OTCMKTS:AAVVF) and Uranium Royalty (NASDAQ:UROY) are both small-cap energy companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, dividends, earnings and risk.

Insider and Institutional Ownership

7.9% of Advantage Energy shares are held by institutional investors. Comparatively, 24.2% of Uranium Royalty shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Advantage Energy and Uranium Royalty’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Advantage Energy	9.39%	3.78%	2.08%
Uranium Royalty	-2.90%	-0.56%	-0.54%

Earnings and Valuation

This table compares Advantage Energy and Uranium Royalty”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Advantage Energy	$396.54 million	3.58	$15.85 million	$0.25	34.03
Uranium Royalty	$11.19 million	44.82	-$4.06 million	($0.01)	-374.00

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

Analyst Ratings

This is a summary of recent recommendations and price targets for Advantage Energy and Uranium Royalty, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Advantage Energy	1	1	1	1	2.50
Uranium Royalty	1	2	1	1	2.40

Uranium Royalty has a consensus target price of $4.50, suggesting a potential upside of 20.32%. Given Uranium Royalty’s higher probable upside, analysts clearly believe Uranium Royalty is more favorable than Advantage Energy.

Volatility & Risk

Advantage Energy has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500. Comparatively, Uranium Royalty has a beta of 1.41, indicating that its share price is 41% more volatile than the S&P 500.

Summary

Advantage Energy beats Uranium Royalty on 8 of the 12 factors compared between the two stocks.

About Advantage Energy

Advantage Energy Ltd., together with its subsidiaries, engages in the acquisition, exploitation, development, and production natural gas, crude oil, and natural gas liquids (NGLs) in the Province of Alberta, Canada. Its assets are located approximately 4 to 80 km northwest of the city of Grande Prairie, Alberta. The company was formerly known as Advantage Oil & Gas Ltd. and changed its name to Advantage Energy Ltd. in May 2021. Advantage Energy Ltd. was founded in 2001 and is headquartered in Calgary, Canada.

About Uranium Royalty

Uranium Royalty Corp. operates as a pure-play uranium royalty company. It acquires, accumulates, and manages a portfolio of geographically diversified uranium interests. The company has royalty interests in the McArthur River, Cigar Lake / Waterbury Lake, Roughrider, Russell Lake, Russell Lake south, and Dawn Lake projects in Saskatchewan, Canada; Anderson and San Rafael projects in Arizona; Lance and Reno Creek projects in Wyoming; Church Rock and Roca Honda projects in New Mexico; Dewey-Burdock project in South Dakota; Slick Rock project in Colorado; Langer Heinrich project in Namibia; and Michelin project in Newfoundland and Labrador, Canada; Energy Queen and Whirlwind project in Utah; and Workman Creek projects in Arizona. Uranium Royalty Corp. was incorporated in 2017 and is headquartered in Vancouver, Canada.