Advantage Oil & Gas (NYSE: AAV) and Abraxas Petroleum Corporation (NASDAQ:AXAS) are both small-cap oils/energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, institutional ownership and risk.

Volatility & Risk

Advantage Oil & Gas has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500. Comparatively, Abraxas Petroleum Corporation has a beta of 1.42, suggesting that its share price is 42% more volatile than the S&P 500.

Earnings and Valuation

This table compares Advantage Oil & Gas and Abraxas Petroleum Corporation’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Advantage Oil & Gas $183.88 million 6.42 $166.46 million $0.23 27.61
Abraxas Petroleum Corporation $62.48 million 4.27 $42.36 million $0.07 23.50

Advantage Oil & Gas has higher revenue and earnings than Abraxas Petroleum Corporation. Abraxas Petroleum Corporation is trading at a lower price-to-earnings ratio than Advantage Oil & Gas, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

53.8% of Advantage Oil & Gas shares are owned by institutional investors. Comparatively, 44.5% of Abraxas Petroleum Corporation shares are owned by institutional investors. 8.5% of Abraxas Petroleum Corporation shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Advantage Oil & Gas and Abraxas Petroleum Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Advantage Oil & Gas 24.83% 3.86% 3.14%
Abraxas Petroleum Corporation 18.14% 7.68% 2.83%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Advantage Oil & Gas and Abraxas Petroleum Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Advantage Oil & Gas 0 1 1 0 2.50
Abraxas Petroleum Corporation 0 0 5 0 3.00

Advantage Oil & Gas currently has a consensus price target of $11.00, indicating a potential upside of 73.23%. Abraxas Petroleum Corporation has a consensus price target of $2.68, indicating a potential upside of 62.92%. Given Advantage Oil & Gas’ higher probable upside, equities analysts plainly believe Advantage Oil & Gas is more favorable than Abraxas Petroleum Corporation.

Summary

Advantage Oil & Gas beats Abraxas Petroleum Corporation on 9 of the 14 factors compared between the two stocks.

About Advantage Oil & Gas

Advantage Oil & Gas Ltd. is an intermediate natural gas and liquids development and production company. The Company is engaged in the business of natural gas exploitation, development, acquisition and production in the Province of Alberta. The Company focuses on the development of Montney resource play at Glacier, Alberta in Western Canada. The Company has drilled over 10 Montney gas wells. The Glacier property lies along the Alberta side of the border with British Columbia between Grande Prairie, Alberta and Dawson Creek, British Columbia. The primary zones of interest are within the Triassic Montney and Doig formation siltstones. The Glacier property consists of over 90 net sections of land with Doig/Montney interests. It owns and operates a gas plant located at 5-02-76-12W6. It also holds interest in approximately 20 additional sections of Doig/Montney land rights in the Glacier, Valhalla and Wembley area proximal to its existing land holdings.

About Abraxas Petroleum Corporation

Abraxas Petroleum Corporation is an independent energy company. The Company is engaged in the acquisition, exploration, development and production of oil and gas. As of December 31, 2016, the Company’s estimated net proved reserves were 44.7 million barrels of oil equivalent (MMBoe), of which 33.6% were classified as proved developed, 74% were oil and natural gas liquids (NGL), and 95% of which (on a PV-10 basis) were operated by the Company. As of December 31, 2016, the Company’s daily net production was 6,181 barrels of oil equivalent per day (Boepd), of which 61% was oil or liquids. The Company’s oil and gas assets are located in three operating regions: the Rocky Mountain, Permian Basin and onshore Gulf Coast. The Company’s properties in the Rocky Mountain region are located in the Williston Basin of North Dakota and Montana, and in the Green River Powder River and Unita Basins of Wyoming and Utah.

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