Vitesse Energy (NYSE:VTS) & APA (NASDAQ:APA) Financial Analysis

Vitesse Energy (NYSE:VTS) and APA (NASDAQ:APA) are both energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, valuation, dividends, profitability, risk, analyst recommendations and institutional ownership.

Insider and Institutional Ownership

51.6% of Vitesse Energy shares are held by institutional investors. Comparatively, 83.0% of APA shares are held by institutional investors. 18.2% of Vitesse Energy shares are held by company insiders. Comparatively, 0.7% of APA shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

Vitesse Energy has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500. Comparatively, APA has a beta of 1.16, indicating that its share price is 16% more volatile than the S&P 500.

Profitability

This table compares Vitesse Energy and APA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vitesse Energy	15.12%	7.25%	4.85%
APA	10.53%	20.98%	7.21%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vitesse Energy	$242.00 million	3.43	$21.06 million	$1.06	20.29
APA	$10.06 billion	0.80	$804.00 million	$2.99	7.54

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

Dividends

Vitesse Energy pays an annual dividend of $2.25 per share and has a dividend yield of 10.5%. APA pays an annual dividend of $1.00 per share and has a dividend yield of 4.4%. Vitesse Energy pays out 212.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. APA pays out 33.4% of its earnings in the form of a dividend. Vitesse Energy has increased its dividend for 2 consecutive years. Vitesse Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a summary of recent ratings and target prices for Vitesse Energy and APA, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vitesse Energy	0	4	3	0	2.43
APA	2	16	4	0	2.09

Vitesse Energy currently has a consensus price target of $24.50, indicating a potential upside of 13.92%. APA has a consensus price target of $24.79, indicating a potential upside of 9.90%. Given Vitesse Energy’s stronger consensus rating and higher possible upside, equities analysts plainly believe Vitesse Energy is more favorable than APA.

Summary

APA beats Vitesse Energy on 9 of the 17 factors compared between the two stocks.

About Vitesse Energy

Vitesse Energy, Inc., together with its subsidiaries, engages in the acquisition, development, and production of non-operated oil and natural gas properties in the United States. It owns and acquires non-operated working interest and royalty interest ownership in the Williston Basin properties located in North Dakota and Montana. The company also owns non-operated interests in the Central Rockies properties located in Colorado and Wyoming. Vitesse Energy, Inc. was founded in 2014 and is based in Centennial, Colorado.

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.