Alvopetro Energy (OTCMKTS:ALVOF) and PrimeEnergy Resources (NASDAQ:PNRG) Critical Analysis

Volatility & Risk

PrimeEnergy Resources has a beta of 0.56, indicating that its share price is 44% less volatile than the S&P 500. Comparatively, Alvopetro Energy has a beta of 0.14, indicating that its share price is 86% less volatile than the S&P 500.

Earnings and Valuation

This table compares PrimeEnergy Resources and Alvopetro Energy”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PrimeEnergy Resources	$123.12 million	2.65	$28.10 million	$23.26	8.15
Alvopetro Energy	$59.69 million	2.17	$28.52 million	$0.39	9.09

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
PrimeEnergy Resources	27.73%	32.76%	18.13%
Alvopetro Energy	29.06%	27.00%	21.92%

Summary

PrimeEnergy Resources beats Alvopetro Energy on 5 of the 9 factors compared between the two stocks.

About PrimeEnergy Resources

PrimeEnergy Resources Corporation, through its subsidiaries, engages in acquisition, development, and production of oil and natural gas properties in the United States. The company owns leasehold, mineral, and royalty interests in producing and non-producing oil and gas properties; and operates approximately 534 active wells and owns non-operating interests and royalties in 952 additional wells. It also acquires producing oil and gas properties through joint ventures with industry partners; and provides contract services to third parties, including well-servicing support, site-preparation, and construction services for oil and gas drilling and reworking operations. The company was formerly known as PrimeEnergy Corporation and changed its name to PrimeEnergy Resources Corporation in December 2018. PrimeEnergy Resources Corporation was incorporated in 1973 and is headquartered in Houston, Texas.

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.