Surge Energy (TSE:SGY) and Canacol Energy (TSE:CNE) are both small-cap energy companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, valuation, institutional ownership, profitability and risk.
Dividends
Surge Energy pays an annual dividend of C$0.02 per share and has a dividend yield of 3.3%. Canacol Energy pays an annual dividend of C$0.15 per share and has a dividend yield of 4.4%. Surge Energy pays out -0.8% of its earnings in the form of a dividend. Canacol Energy pays out -406.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Canacol Energy is clearly the better dividend stock, given its higher yield and lower payout ratio.
Profitability
This table compares Surge Energy and Canacol Energy's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Surge Energy | N/A | N/A | N/A |
| Canacol Energy | N/A | N/A | N/A |
Valuation & Earnings
This table compares Surge Energy and Canacol Energy's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Surge Energy | C$191.32 million | 0.94 | C$-755,681,840.00 | C($2.22) | -0.24 |
| Canacol Energy | C$278.80 million | 2.27 | C$-6,821,570.00 | C($0.04) | -92.63 |
Canacol Energy has higher revenue and earnings than Surge Energy. Canacol Energy is trading at a lower price-to-earnings ratio than Surge Energy, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current ratings for Surge Energy and Canacol Energy, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Surge Energy | 0 | 4 | 3 | 0 | 2.43 |
| Canacol Energy | 0 | 0 | 1 | 0 | 3.00 |
Surge Energy currently has a consensus price target of C$0.84, indicating a potential upside of 58.02%. Canacol Energy has a consensus price target of C$6.00, indicating a potential upside of 70.45%. Given Canacol Energy's stronger consensus rating and higher probable upside, analysts plainly believe Canacol Energy is more favorable than Surge Energy.
Summary
Canacol Energy beats Surge Energy on 8 of the 10 factors compared between the two stocks.
