Enerplus Corporation (NYSE: ERF) and Advantage Oil & Gas (NYSE:AAV) are both oils/energy companies, but which is the superior business? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, dividends, earnings, institutional ownership and profitability.

Analyst Ratings

This is a breakdown of recent recommendations for Enerplus Corporation and Advantage Oil & Gas, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Enerplus Corporation 0 0 6 0 3.00
Advantage Oil & Gas 0 2 1 0 2.33

Enerplus Corporation presently has a consensus target price of $14.80, indicating a potential upside of 63.54%. Advantage Oil & Gas has a consensus target price of $10.17, indicating a potential upside of 105.39%. Given Advantage Oil & Gas’ higher possible upside, analysts plainly believe Advantage Oil & Gas is more favorable than Enerplus Corporation.

Profitability

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

Net Margins Return on Equity Return on Assets
Enerplus Corporation 121.44% 14.21% 8.42%
Advantage Oil & Gas 27.06% 3.05% 2.48%

Dividends

Enerplus Corporation pays an annual dividend of $0.09 per share and has a dividend yield of 1.0%. Advantage Oil & Gas does not pay a dividend. Enerplus Corporation pays out 2.8% of its earnings in the form of a dividend.

Risk & Volatility

Enerplus Corporation has a beta of 1.37, suggesting that its share price is 37% more volatile than the S&P 500. Comparatively, Advantage Oil & Gas has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500.

Earnings and Valuation

This table compares Enerplus Corporation and Advantage Oil & Gas’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Enerplus Corporation $545.68 million 4.02 $300.12 million $3.25 2.78
Advantage Oil & Gas $122.28 million 7.53 -$11.88 million $0.26 19.04

Enerplus Corporation has higher revenue and earnings than Advantage Oil & Gas. Enerplus 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.

Institutional & Insider Ownership

50.0% of Enerplus Corporation shares are held by institutional investors. Comparatively, 53.7% of Advantage Oil & Gas shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Enerplus Corporation beats Advantage Oil & Gas on 10 of the 15 factors compared between the two stocks.

About Enerplus Corporation

Enerplus Corporation is an oil and natural gas company. The Company’s oil and natural gas property interests are located in the United States, primarily in North Dakota, Montana, and Pennsylvania, as well as in western Canada in the provinces of Alberta, British Columbia and Saskatchewan. The Company’s oil and natural gas property interests contains proved plus probable gross reserves of approximately 14.3 million barrels (MMbbls) of light and medium crude oil, 39.0 MMbbls of heavy crude oil, 123 MMbbls of tight oil, 18.1 MMbbls of natural gas liquids (NGLs), 126.3 billion cubic feet (Bcf) of conventional natural gas and 1,002.8 Bcf of shale gas, for a total of approximately 382.5 million barrels of oil equivalent (MMBOE). The Company’s primary crude oil properties in the United States are located in the Fort Berthold region of North Dakota and in Richland County, Montana.

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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