Alvopetro Energy (OTCMKTS:ALVOF – Get Free Report) and Meren Energy (OTCMKTS:AOIFF – Get Free Report) are both small-cap energy companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, earnings, dividends, institutional ownership and profitability.
Profitability
This table compares Alvopetro Energy and Meren Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Alvopetro Energy | 40.90% | 25.91% | 19.12% |
| Meren Energy | N/A | 3.52% | 1.68% |
Earnings & Valuation
This table compares Alvopetro Energy and Meren Energy”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Alvopetro Energy | $57.95 million | 4.15 | $23.10 million | $0.66 | 9.84 |
| Meren Energy | N/A | N/A | -$279.10 million | ($0.52) | -2.50 |
Alvopetro Energy has higher revenue and earnings than Meren Energy. Meren Energy is trading at a lower price-to-earnings ratio than Alvopetro Energy, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Alvopetro Energy has a beta of -0.17, suggesting that its stock price is 117% less volatile than the S&P 500. Comparatively, Meren Energy has a beta of 0.53, suggesting that its stock price is 47% less volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings for Alvopetro Energy and Meren Energy, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Alvopetro Energy | 0 | 1 | 0 | 0 | 2.00 |
| Meren Energy | 0 | 0 | 0 | 0 | 0.00 |
Dividends
Alvopetro Energy pays an annual dividend of $0.48 per share and has a dividend yield of 7.4%. Meren Energy pays an annual dividend of $0.14 per share and has a dividend yield of 10.8%. Alvopetro Energy pays out 72.7% of its earnings in the form of a dividend. Meren Energy pays out -26.9% 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. Meren Energy is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Alvopetro Energy beats Meren Energy on 8 of the 11 factors compared between the two stocks.
About Alvopetro Energy
Alvopetro Energy Ltd. operates as an independent upstream and midstream operator. It engages in the acquisition, exploration, development, and production of hydrocarbons. The company holds interests in the Caburé and Murucututu natural gas assets, Block 182 and 183 exploration assets, and Bom Lugar and Mãe-da-lua oil fields, which covers an area of approximately 22,166 acres in the Recôncavo basin onshore Brazil. Alvopetro Energy Ltd. was incorporated in 2013 and is headquartered in Calgary, Canada.
About Meren Energy
Africa Oil Corp., together with its subsidiaries, operates as an oil and gas exploration and production company in Kenya, Nigeria, and South Africa. The company holds interests in producing and development assets in deep-water Nigeria, and development assets in Kenya. It also has a portfolio of exploration and appraisal assets in Namibia, Nigeria, South Africa, and Kenya, as well as Guyana and Senegal Guinea Bissau Joint Development Zone. The company was formerly known as Canmex Minerals Corporation and changed its name to Africa Oil Corp. in August 2007. Africa Oil Corp. was incorporated in 1983 and is headquartered in Vancouver, Canada.
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