Financial Review: AER Energy Resources (OTCMKTS:AERN) vs. EOG Resources (NYSE:EOG)

AER Energy Resources (OTCMKTS:AERN) and EOG Resources (NYSE:EOG) are both energy companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.

Earnings and Valuation

This table compares AER Energy Resources and EOG Resources”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AER Energy Resources	N/A	N/A	N/A	N/A	N/A
EOG Resources	$22.71 billion	2.52	$6.40 billion	$10.29	10.20

EOG Resources has higher revenue and earnings than AER Energy Resources.

Insider & Institutional Ownership

89.9% of EOG Resources shares are held by institutional investors. 61.0% of AER Energy Resources shares are held by company insiders. Comparatively, 0.1% of EOG Resources shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings for AER Energy Resources and EOG Resources, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AER Energy Resources	0	0	0	0	0.00
EOG Resources	0	15	11	1	2.48

EOG Resources has a consensus price target of $140.76, suggesting a potential upside of 34.06%. Given EOG Resources’ stronger consensus rating and higher probable upside, analysts plainly believe EOG Resources is more favorable than AER Energy Resources.

Volatility & Risk

AER Energy Resources has a beta of 1.18, indicating that its share price is 18% more volatile than the S&P 500. Comparatively, EOG Resources has a beta of 0.72, indicating that its share price is 28% less volatile than the S&P 500.

Profitability

This table compares AER Energy Resources and EOG Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AER Energy Resources	N/A	N/A	N/A
EOG Resources	25.25%	20.51%	12.93%

Summary

EOG Resources beats AER Energy Resources on 9 of the 11 factors compared between the two stocks.

About AER Energy Resources

AER Energy Resources, Inc., through its subsidiaries, engages in acquiring, managing, and operating oil and gas properties in North America. The company is also involved in the recycling of used motor oil; marketing of related fuel and energy products to users, suppliers, and recycler’s; and real estate business. AER Energy Resources, Inc. was founded in 1989 and is based in Scottsdale, Arizona.

About EOG Resources

EOG Resources, Inc., together with its subsidiaries, explores for, develops, produces, and markets crude oil, natural gas liquids, and natural gas primarily in producing basins in the United States, the Republic of Trinidad and Tobago and internationally. The company was formerly known as Enron Oil & Gas Company. EOG Resources, Inc. was incorporated in 1985 and is headquartered in Houston, Texas.