Analyzing APA (NASDAQ:APA) and Tourmaline Oil (OTCMKTS:TRMLF)

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

Insider & Institutional Ownership

1.8% of Tourmaline Oil shares are held by institutional investors. Comparatively, 83.0% of APA shares are held by institutional investors. 0.7% of APA shares are held 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.

Earnings & Valuation

This table compares Tourmaline Oil and APA”s gross revenue, earnings per share and valuation.

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

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.

Dividends

Tourmaline Oil pays an annual dividend of $1.45 per share and has a dividend yield of 3.2%. APA pays an annual dividend of $1.00 per share and has a dividend yield of 2.3%. 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. APA pays out 21.1% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Tourmaline Oil and APA, as reported by MarketBeat.com.

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

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

Profitability

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

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

Risk & Volatility

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

Summary

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

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.

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.