WPX Energy (NYSE: WPX) and Vermilion Energy (NYSE:VET) are both mid-cap oils/energy companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, profitability and risk.
This table compares WPX Energy and Vermilion Energy’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This table compares WPX Energy and Vermilion Energy’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|WPX Energy||$1.34 billion||4.43||-$16.00 million||($0.08)||-185.60|
|Vermilion Energy||$789.86 million||4.93||$48.02 million||$0.38||83.95|
Vermilion Energy has lower revenue, but higher earnings than WPX Energy. WPX Energy is trading at a lower price-to-earnings ratio than Vermilion Energy, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and target prices for WPX Energy and Vermilion Energy, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
WPX Energy currently has a consensus target price of $18.53, suggesting a potential upside of 24.75%. Vermilion Energy has a consensus target price of $52.25, suggesting a potential upside of 63.79%. Given Vermilion Energy’s stronger consensus rating and higher possible upside, analysts plainly believe Vermilion Energy is more favorable than WPX Energy.
Institutional & Insider Ownership
99.3% of WPX Energy shares are owned by institutional investors. Comparatively, 55.9% of Vermilion Energy shares are owned by institutional investors. 1.4% of WPX Energy shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Volatility & Risk
WPX Energy has a beta of 2.41, suggesting that its stock price is 141% more volatile than the S&P 500. Comparatively, Vermilion Energy has a beta of 0.71, suggesting that its stock price is 29% less volatile than the S&P 500.
Vermilion Energy pays an annual dividend of $2.07 per share and has a dividend yield of 6.5%. WPX Energy does not pay a dividend. Vermilion Energy pays out 544.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Vermilion Energy beats WPX Energy on 10 of the 17 factors compared between the two stocks.
About WPX Energy
WPX Energy, Inc. is an oil and natural gas exploration and production company. The Company is engaged in the exploitation and development of unconventional properties. It operates in the exploration and production segment of the oil and gas industry and its operations are conducted in the United States. It is focused on exploiting, developing and growing its oil positions in the Delaware (a subset of the Permian Basin) and San Juan Basins in the southwestern United States and the Williston Basin in North Dakota. As of December 31, 2016, it operated 642 wells in the Delaware Basin and also owned interests in 783 wells operated by others. As of December 31, 2016, it held approximately 98,000 acres in the Delaware Basin, with operations located in Eddy, Lea and Chaves Counties in New Mexico and Loving, Pecos, Reeves, Ward and Winkler Counties in Texas. Its activity in the Delaware Basin is focused on the Wolfcamp Shale formation, the Bone Spring interval and the Delaware sand interval.
About Vermilion Energy
Vermilion Energy Inc. produces oil and gas, and focuses on the acquisition, development and optimization of producing properties in North America, the Europe and Australia. Its segments include Canada, which includes production and assets focused in West Pembina near Drayton Valley, Alberta and Northgate in southeast Saskatchewan; France, which produces oil in France; Netherlands, which produces onshore gas and interests include over 24 onshore licenses and two offshore licenses; Germany, which holds interest in a four partner consortium; Ireland, which includes a non-operating interest in the offshore Corrib gas field located approximately 83 kilometers off the northwest coast of Ireland; Australia, which holds an operated working interest in the Wandoo field located approximately 80 kilometers offshore on the northwest shelf of Australia; the United States, which has interests in approximately 97,200 net acres of land in the Powder River Basin of northeastern Wyoming, and Corporate.
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