Critical Review: Vital Energy (NYSE:VTLE) versus Stabilis Solutions (NASDAQ:SLNG)

Stabilis Solutions (NASDAQ:SLNGGet Free Report) and Vital Energy (NYSE:VTLEGet Free Report) are both small-cap energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.

Institutional & Insider Ownership

3.8% of Stabilis Solutions shares are held by institutional investors. Comparatively, 86.5% of Vital Energy shares are held by institutional investors. 72.2% of Stabilis Solutions shares are held by company insiders. Comparatively, 1.5% of Vital Energy shares are held by company insiders. 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.

Volatility and Risk

Stabilis Solutions has a beta of 0.11, indicating that its stock price is 89% less volatile than the S&P 500. Comparatively, Vital Energy has a beta of 1.62, indicating that its stock price is 62% more volatile than the S&P 500.

Valuation & Earnings

This table compares Stabilis Solutions and Vital Energy”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Stabilis Solutions $73.29 million 1.06 $4.60 million $0.04 104.00
Vital Energy $1.95 billion 0.36 -$173.52 million ($19.79) -0.93

Stabilis Solutions has higher earnings, but lower revenue than Vital Energy. Vital Energy is trading at a lower price-to-earnings ratio than Stabilis Solutions, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and price targets for Stabilis Solutions and Vital Energy, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Stabilis Solutions 0 0 1 0 3.00
Vital Energy 4 6 1 1 1.92

Stabilis Solutions presently has a consensus target price of $10.00, suggesting a potential upside of 140.38%. Vital Energy has a consensus target price of $27.80, suggesting a potential upside of 51.71%. Given Stabilis Solutions’ stronger consensus rating and higher probable upside, research analysts clearly believe Stabilis Solutions is more favorable than Vital Energy.

Profitability

This table compares Stabilis Solutions and Vital Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Stabilis Solutions 1.28% 1.35% 1.05%
Vital Energy -38.52% 11.86% 5.45%

Summary

Stabilis Solutions beats Vital Energy on 8 of the 14 factors compared between the two stocks.

About Stabilis Solutions

(Get Free Report)

Stabilis Solutions, Inc., together with its subsidiaries, an energy transition company, provides clean energy production, storage, transportation, and fueling solutions primarily using liquefied natural gas (LNG) to various end markets in North America. The company offers LNG solutions to customers in aerospace, agriculture, energy, industrial, marine bunkering, mining, pipeline, remote power, and utility markets. It also provides engineering and field support services, as well as rents cryogenic equipment. The company was founded in 2013 and is headquartered in Houston, Texas. Stabilis Solutions, Inc. is a subsidiary of LNG Investment Company LLC.

About Vital Energy

(Get Free Report)

Vital Energy, Inc., an independent energy company, engages in the acquisition, exploration, and development of oil and natural gas properties in the Permian Basin of West Texas, the United States. The company was formerly known as Laredo Petroleum, Inc. and changed its name to Vital Energy, Inc. in January 2023. Vital Energy, Inc. was founded in 2006 and is headquartered in Tulsa, Oklahoma.

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