Advantage Oil & Gas (OTCMKTS:AAVVF) and Kosmos Energy (NYSE:KOS) are both small-cap oils/energy companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, dividends, risk, profitability, analyst recommendations and institutional ownership.
Analyst Ratings
This is a summary of recent recommendations and price targets for Advantage Oil & Gas and Kosmos Energy, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Advantage Oil & Gas | 0 | 2 | 8 | 0 | 2.80 |
Kosmos Energy | 0 | 7 | 3 | 0 | 2.30 |
Advantage Oil & Gas currently has a consensus price target of $3.4722, indicating a potential upside of 71.89%. Kosmos Energy has a consensus price target of $2.3986, indicating a potential downside of 29.04%. Given Advantage Oil & Gas' stronger consensus rating and higher possible upside, equities analysts clearly believe Advantage Oil & Gas is more favorable than Kosmos Energy.
Valuation and Earnings
This table compares Advantage Oil & Gas and Kosmos Energy's revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Advantage Oil & Gas | $207.42 million | 1.83 | $-18,580,000.00 | N/A | N/A |
Kosmos Energy | $1.51 billion | 0.91 | $-55,780,000.00 | ($0.05) | -67.60 |
Advantage Oil & Gas has higher earnings, but lower revenue than Kosmos Energy.
Risk & Volatility
Advantage Oil & Gas has a beta of 1.83, meaning that its share price is 83% more volatile than the S&P 500. Comparatively, Kosmos Energy has a beta of 3.77, meaning that its share price is 277% more volatile than the S&P 500.
Insider and Institutional Ownership
3.2% of Advantage Oil & Gas shares are held by institutional investors. Comparatively, 80.4% of Kosmos Energy shares are held by institutional investors. 1.5% of Kosmos Energy shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Profitability
This table compares Advantage Oil & Gas and Kosmos Energy's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Advantage Oil & Gas | -133.25% | -0.34% | -0.24% |
Kosmos Energy | -45.99% | -41.86% | -5.97% |
Summary
Advantage Oil & Gas beats Kosmos Energy on 8 of the 13 factors compared between the two stocks.