APA (NASDAQ:APA) and Tourmaline Oil (OTCMKTS:TRMLF) Financial Comparison

APA (NASDAQ:APA) and Tourmaline Oil (OTCMKTS:TRMLF) are both large-cap energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, earnings, analyst recommendations, dividends, institutional ownership, valuation and risk.

Analyst Recommendations

This is a breakdown of current ratings for APA and Tourmaline Oil, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
APA	4	17	9	0	2.17
Tourmaline Oil	0	6	4	1	2.55

APA presently has a consensus target price of $41.68, indicating a potential downside of 2.55%. Tourmaline Oil has a consensus target price of $65.00, indicating a potential upside of 43.27%. Given Tourmaline Oil’s stronger consensus rating and higher probable upside, analysts plainly believe Tourmaline Oil is more favorable than APA.

Dividends

APA pays an annual dividend of $1.00 per share and has a dividend yield of 2.3%. Tourmaline Oil pays an annual dividend of $1.45 per share and has a dividend yield of 3.2%. APA pays out 21.1% of its earnings in the form of a dividend. Tourmaline Oil pays out 201.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares APA and Tourmaline Oil’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
APA	19.48%	24.84%	10.15%
Tourmaline Oil	6.05%	9.05%	6.25%

Valuation & Earnings

This table compares APA and Tourmaline Oil”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
APA	$9.22 billion	1.63	$1.43 billion	$4.73	9.04
Tourmaline Oil	$4.72 billion	3.74	$187.99 million	$0.72	63.01

APA has higher revenue and earnings than Tourmaline Oil. APA is trading at a lower price-to-earnings ratio than Tourmaline Oil, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

83.0% of APA shares are owned by institutional investors. Comparatively, 1.8% of Tourmaline Oil shares are owned by institutional investors. 0.7% of APA shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

APA has a beta of 0.37, meaning that its stock price is 63% less volatile than the S&P 500. Comparatively, Tourmaline Oil has a beta of -0.24, meaning that its stock price is 124% less volatile than the S&P 500.

Summary

APA beats Tourmaline Oil on 11 of the 17 factors compared between the two stocks.

About APA

APA Corporation, an independent energy company, explores for, develops, and produces natural gas, crude oil, and natural gas liquids. It has oil and gas operations in the United States, Egypt, and North Sea. The company also has exploration and appraisal activities in Suriname, as well as holds interests in projects located in Uruguay and internationally. APA Corporation was incorporated in 1954 and is headquartered in Houston, Texas.

About Tourmaline Oil

Tourmaline Oil Corp. explores for and develops oil and natural gas properties in the Western Canadian Sedimentary Basin. The company holds interests in properties located in the Alberta Deep Basin, Northeast British Columbia Montney, and the Peace River High Triassic oil complex. Tourmaline Oil Corp. was incorporated in 2008 and is headquartered in Calgary, Canada.