Reviewing SDX Energy (OTCMKTS:SDXEF) and Vaalco Energy (NYSE:EGY)

SDX Energy (OTCMKTS:SDXEF) and Vaalco Energy (NYSE:EGY) are both energy companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, analyst recommendations, risk, dividends, earnings, institutional ownership and profitability.

Valuation and Earnings

This table compares SDX Energy and Vaalco Energy”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SDX Energy	N/A	N/A	N/A	N/A	N/A
Vaalco Energy	$359.27 million	1.61	-$41.39 million	($1.37)	-4.04

SDX Energy has higher earnings, but lower revenue than Vaalco Energy.

Profitability

This table compares SDX Energy and Vaalco Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SDX Energy	N/A	N/A	N/A
Vaalco Energy	-31.11%	-13.93%	-6.48%

Insider and Institutional Ownership

50.3% of Vaalco Energy shares are owned by institutional investors. 3.0% of Vaalco Energy shares are owned 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 Recommendations

This is a breakdown of current recommendations for SDX Energy and Vaalco Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SDX Energy	0	0	0	0	0.00
Vaalco Energy	1	1	0	0	1.50

Vaalco Energy has a consensus price target of $7.30, indicating a potential upside of 31.96%. Given Vaalco Energy’s stronger consensus rating and higher probable upside, analysts clearly believe Vaalco Energy is more favorable than SDX Energy.

Summary

Vaalco Energy beats SDX Energy on 5 of the 8 factors compared between the two stocks.

About SDX Energy

SDX Energy plc engages in the exploration, development, and production of oil and gas in the Arab Republic of Egypt and the Kingdom of Morocco. The company holds 50% working interest in Meseda and Rabul fields in the West Gharib, Egypt; 55% interest in the South Disouq concession located in the Nile Delta region, Egypt; and 75% working interest in four exploration permits consisting of Sebou Central, Gharb Occidental, Lalla Mimouna Nord, and Moulay Bouchta Ouest concessions situated in the Gharb Basin, Morocco. The company was incorporated in 2019 and is headquartered in London, the United Kingdom.

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.