Critical Contrast: Advantage Energy (OTCMKTS:AAVVF) vs. Riley Exploration Permian (NYSE:REPX)

Advantage Energy (OTCMKTS:AAVVF) and Riley Exploration Permian (NYSE:REPX) are both small-cap oils/energy companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, valuation, dividends, risk, profitability and institutional ownership.

Profitability

This table compares Advantage Energy and Riley Exploration Permian’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Advantage Energy	8.62%	2.88%	1.78%
Riley Exploration Permian	28.48%	23.82%	11.31%

Risk & Volatility

Advantage Energy has a beta of 1.55, suggesting that its share price is 55% more volatile than the S&P 500. Comparatively, Riley Exploration Permian has a beta of 1.46, suggesting that its share price is 46% more volatile than the S&P 500.

Earnings and Valuation

This table compares Advantage Energy and Riley Exploration Permian”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Advantage Energy	$400.81 million	2.96	$75.26 million	$0.20	35.56
Riley Exploration Permian	$407.32 million	1.92	$111.59 million	$5.64	6.46

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

Institutional & Insider Ownership

7.9% of Advantage Energy shares are held by institutional investors. Comparatively, 58.9% of Riley Exploration Permian shares are held by institutional investors. 3.9% of Riley Exploration Permian shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings for Advantage Energy and Riley Exploration Permian, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Advantage Energy	0	2	1	0	2.33
Riley Exploration Permian	0	0	1	0	3.00

Advantage Energy presently has a consensus target price of $13.75, indicating a potential upside of 93.36%. Riley Exploration Permian has a consensus target price of $47.00, indicating a potential upside of 29.01%. Given Advantage Energy’s higher possible upside, research analysts clearly believe Advantage Energy is more favorable than Riley Exploration Permian.

Summary

Riley Exploration Permian beats Advantage Energy on 9 of the 13 factors compared between the two stocks.

About Advantage Energy

Advantage Energy Ltd., together with its subsidiaries, engages in the acquisition, exploitation, development, and production natural gas, crude oil, and natural gas liquids (NGLs) in the Province of Alberta, Canada. Its assets are located approximately 4 to 80 km northwest of the city of Grande Prairie, Alberta. The company was formerly known as Advantage Oil & Gas Ltd. and changed its name to Advantage Energy Ltd. in May 2021. Advantage Energy Ltd. was founded in 2001 and is headquartered in Calgary, Canada.

About Riley Exploration Permian

Riley Exploration Permian, Inc., an independent oil and natural gas company, engages in the acquisition, exploration, development, and production of oil, natural gas, and natural gas liquids in Texas and New Mexico. The company's activities are primarily focused on the Northwest Shelf and Yeso trend of the Permian Basin. Its acreage is primarily located on contiguous blocks in Yoakum County, Texas; and Eddy County, New Mexico. Riley Exploration Permian, Inc. is headquartered in Oklahoma City, Oklahoma.