Comparing Baytex Energy (OTCMKTS:BTEGF) & Tourmaline Oil (OTCMKTS:TRMLF)

Baytex Energy (OTCMKTS:BTEGF) and Tourmaline Oil (OTCMKTS:TRMLF) are both energy companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, institutional ownership, dividends, risk and profitability.

Earnings and Valuation

This table compares Baytex Energy 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
Baytex Energy	$2.79 billion	0.94	$1.29 billion	$1.47	3.27
Tourmaline Oil	$4.72 billion	3.69	$187.99 million	$0.72	62.24

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Baytex Energy	38.28%	40.85%	20.18%
Tourmaline Oil	6.05%	9.05%	6.25%

Insider and Institutional Ownership

1.8% of Tourmaline Oil shares are owned by institutional investors. 0.8% of Baytex Energy shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility and Risk

Baytex Energy has a beta of 2.16, suggesting that its stock price is 116% more volatile than the S&P 500. Comparatively, Tourmaline Oil has a beta of -0.21, suggesting that its stock price is 121% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Baytex Energy and Tourmaline Oil, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Baytex Energy	0	1	1	0	2.50
Tourmaline Oil	1	5	3	1	2.40

Tourmaline Oil has a consensus price target of $65.00, suggesting a potential upside of 45.06%. Given Tourmaline Oil’s higher probable upside, analysts plainly believe Tourmaline Oil is more favorable than Baytex Energy.

Summary

Baytex Energy beats Tourmaline Oil on 8 of the 15 factors compared between the two stocks.

About Baytex Energy

Baytex Energy Corp. operates as an oil & gas exploration and production company. It engages in the acquisition, development and production of crude oil and natural gas in the Western Canadian Sedimentary Basin and in the Eagle Ford in the United States. The company was founded in 1993 and is headquartered in Calgary, Canada.

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.