Obsidian Energy (OTCMKTS:OBELF) and Riley Exploration Permian (NYSE:REPX) Head-To-Head Review

Riley Exploration Permian (NYSE:REPX) and Obsidian Energy (OTCMKTS:OBELF) are both small-cap energy companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, earnings, valuation, profitability, dividends, institutional ownership and analyst recommendations.

Risk and Volatility

Riley Exploration Permian has a beta of 1.49, suggesting that its share price is 49% more volatile than the S&P 500. Comparatively, Obsidian Energy has a beta of 2.47, suggesting that its share price is 147% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Riley Exploration Permian and Obsidian Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Riley Exploration Permian	0	0	1	0	3.00
Obsidian Energy	0	0	0	0	0.00

Riley Exploration Permian currently has a consensus target price of $47.00, suggesting a potential upside of 76.82%. Given Riley Exploration Permian’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Riley Exploration Permian is more favorable than Obsidian Energy.

Profitability

This table compares Riley Exploration Permian and Obsidian Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Riley Exploration Permian	28.48%	23.82%	11.31%
Obsidian Energy	99.13%	78.07%	35.32%

Institutional and Insider Ownership

58.9% of Riley Exploration Permian shares are owned by institutional investors. Comparatively, 0.0% of Obsidian Energy shares are owned by institutional investors. 4.7% of Riley Exploration Permian shares are owned by company 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.

Earnings and Valuation

This table compares Riley Exploration Permian and Obsidian Energy”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Riley Exploration Permian	$392.89 million	1.49	$111.59 million	$4.53	5.87
Obsidian Energy	$220.00 million	2.05	-$576.07 million	$4.17	1.34

Riley Exploration Permian has higher revenue and earnings than Obsidian Energy. Obsidian Energy is trading at a lower price-to-earnings ratio than Riley Exploration Permian, indicating that it is currently the more affordable of the two stocks.

Summary

Riley Exploration Permian beats Obsidian Energy on 9 of the 14 factors compared between the two stocks.

About Riley Exploration Permian

Riley Exploration Permian, Inc., an independent oil and natural gas company, engages in the acquisition, exploration, development, and production of oil, natural gas, and natural gas liquids in Texas and New Mexico. The company's activities are primarily focused on the Northwest Shelf and Yeso trend of the Permian Basin. Its acreage is primarily located on contiguous blocks in Yoakum County, Texas; and Eddy County, New Mexico. Riley Exploration Permian, Inc. is headquartered in Oklahoma City, Oklahoma.

About Obsidian Energy

Obsidian Energy Ltd. is an exploration and production company. The firm engages in exploring, developing, and holds interests in oil and natural gas properties and related production infrastructure in the Western Canada Sedimentary Basin directly and through investments in securities of subsidiaries holding such interests. Its property portfolio includes Cardium, Viking, and Peace River. The company was founded on December 27, 1979 and is headquartered in Calgary, Canada.