Alvopetro Energy (OTCMKTS:ALVOF) vs. Vital Energy (NYSE:VTLE) Critical Review

Vital Energy (NYSE:VTLE) and Alvopetro Energy (OTCMKTS:ALVOF) are both small-cap oils/energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, risk, profitability, institutional ownership, earnings and dividends.

Insider and Institutional Ownership

86.5% of Vital Energy shares are owned by institutional investors. 1.2% of Vital Energy shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Vital Energy and Alvopetro Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vital Energy	-8.89%	9.32%	4.72%
Alvopetro Energy	29.06%	27.00%	21.92%

Valuation & Earnings

This table compares Vital Energy and Alvopetro Energy”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vital Energy	$1.95 billion	0.60	$695.08 million	($4.75)	-6.50
Alvopetro Energy	$59.69 million	2.11	$28.52 million	$0.39	8.85

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

Risk & Volatility

Vital Energy has a beta of 3.12, meaning that its stock price is 212% more volatile than the S&P 500. Comparatively, Alvopetro Energy has a beta of 0.07, meaning that its stock price is 93% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for Vital Energy and Alvopetro Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vital Energy	2	6	2	0	2.00
Alvopetro Energy	0	0	0	0	0.00

Vital Energy currently has a consensus price target of $45.90, indicating a potential upside of 48.60%. Given Vital Energy’s stronger consensus rating and higher probable upside, equities analysts clearly believe Vital Energy is more favorable than Alvopetro Energy.

Summary

Vital Energy beats Alvopetro Energy on 8 of the 13 factors compared between the two stocks.

About Vital Energy

Vital Energy, Inc., an independent energy company, engages in the acquisition, exploration, and development of oil and natural gas properties in the Permian Basin of West Texas, the United States. The company was formerly known as Laredo Petroleum, Inc. and changed its name to Vital Energy, Inc. in January 2023. Vital Energy, Inc. was founded in 2006 and is headquartered in Tulsa, Oklahoma.

About Alvopetro Energy

Alvopetro Energy Ltd. operates as an independent upstream and midstream operator. It engages in the acquisition, exploration, development, and production of hydrocarbons. The company holds interests in the Caburé and Murucututu natural gas assets, Block 182 and 183 exploration assets, and Bom Lugar and Mãe-da-lua oil fields, which covers an area of approximately 22,166 acres in the Recôncavo basin onshore Brazil. Alvopetro Energy Ltd. was incorporated in 2013 and is headquartered in Calgary, Canada.