Critical Contrast: DXI Capital (OTCMKTS:DXIEF) and Evolution Petroleum (NYSE:EPM)

DXI Capital (OTCMKTS:DXIEF) and Evolution Petroleum (NYSE:EPM) are both small-cap energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, risk, earnings, valuation, institutional ownership and dividends.

Analyst Recommendations

This is a summary of current recommendations and price targets for DXI Capital and Evolution Petroleum, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DXI Capital	0	0	0	0	0.00
Evolution Petroleum	1	1	2	0	2.25

Evolution Petroleum has a consensus price target of $6.10, indicating a potential upside of 38.32%. Given Evolution Petroleum’s stronger consensus rating and higher possible upside, analysts clearly believe Evolution Petroleum is more favorable than DXI Capital.

Profitability

This table compares DXI Capital and Evolution Petroleum’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DXI Capital	N/A	N/A	-770.61%
Evolution Petroleum	2.04%	2.42%	1.20%

Insider and Institutional Ownership

60.1% of Evolution Petroleum shares are owned by institutional investors. 10.5% of Evolution Petroleum shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

DXI Capital has a beta of 137.13, suggesting that its share price is 13,613% more volatile than the S&P 500. Comparatively, Evolution Petroleum has a beta of 0.52, suggesting that its share price is 48% less volatile than the S&P 500.

Earnings and Valuation

This table compares DXI Capital and Evolution Petroleum”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DXI Capital	N/A	N/A	-$140,000.00	($0.01)	-25.53
Evolution Petroleum	$85.84 million	1.78	$4.08 million	$0.03	147.00

Evolution Petroleum has higher revenue and earnings than DXI Capital. DXI Capital is trading at a lower price-to-earnings ratio than Evolution Petroleum, indicating that it is currently the more affordable of the two stocks.

Summary

Evolution Petroleum beats DXI Capital on 12 of the 13 factors compared between the two stocks.

About DXI Capital

DXI Capital Corp. does not have signification operations. Previously, it was engaged in the exploration and development of oil and gas properties in North America. The company was formerly known as DXI Energy Inc. and changed its name to DXI Capital Corp. in September 2020. DXI Capital Corp. was incorporated in 1968 and is based in Vancouver, Canada.

About Evolution Petroleum

Evolution Petroleum Corporation, an energy company, engages in the development, production, ownership, and exploitation of onshore oil and gas properties in the United States. The company holds a non-operated interests in the SCOOP and STACK plays located in Central Oklahoma; the Chaveroo Field situated in Chaves and Roosevelt Counties, New Mexico; the Jonah Field located in Sublette County, Wyoming; the Williston Basin situated in Williston, North Dakota; the Barnett Shale field located in North Texas; the Hamilton Dome situated in Hot Springs County, Wyoming; and the Delhi Field, an onshore CO2-EOR project located in northeast Louisiana in Franklin, Madison, and Richland Parishes, as well as small overriding royalty interests in four onshore central Texas wells. The company was founded in 2003 and is based in Houston, Texas.