Critical Review: Advantage Oil & Gas (AAV) vs. Its Competitors
Advantage Oil & Gas (NYSE: AAV) is one of 260 publicly-traded companies in the “Oil & Gas Exploration and Production” industry, but how does it contrast to its competitors? We will compare Advantage Oil & Gas to related companies based on the strength of its dividends, risk, analyst recommendations, institutional ownership, valuation, earnings and profitability.
This is a breakdown of current ratings and price targets for Advantage Oil & Gas and its competitors, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Advantage Oil & Gas||0||2||2||0||2.50|
|Advantage Oil & Gas Competitors||1468||7634||12317||262||2.52|
Advantage Oil & Gas presently has a consensus price target of $10.38, suggesting a potential upside of 82.02%. As a group, “Oil & Gas Exploration and Production” companies have a potential upside of 31.84%. Given Advantage Oil & Gas’ higher probable upside, equities analysts clearly believe Advantage Oil & Gas is more favorable than its competitors.
Insider & Institutional Ownership
54.2% of Advantage Oil & Gas shares are owned by institutional investors. Comparatively, 61.0% of shares of all “Oil & Gas Exploration and Production” companies are owned by institutional investors. 12.1% of shares of all “Oil & Gas Exploration and Production” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares Advantage Oil & Gas and its competitors gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|Advantage Oil & Gas||$122.28 million||-$11.88 million||21.92|
|Advantage Oil & Gas Competitors||$1.89 billion||-$443.16 million||44.58|
Advantage Oil & Gas’ competitors have higher revenue, but lower earnings than Advantage Oil & Gas. Advantage Oil & Gas is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.
Volatility & Risk
Advantage Oil & Gas has a beta of 0.93, meaning that its share price is 7% less volatile than the S&P 500. Comparatively, Advantage Oil & Gas’ competitors have a beta of 1.33, meaning that their average share price is 33% more volatile than the S&P 500.
This table compares Advantage Oil & Gas and its competitors’ 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%|
|Advantage Oil & Gas Competitors||-427.53%||-1.20%||2.04%|
Advantage Oil & Gas competitors beat Advantage Oil & Gas on 8 of the 13 factors compared.
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.
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