Financial Survey: VAALCO Energy (NYSE:EGY) vs. Brigham Minerals (NYSE:MNRL)
Brigham Minerals (NYSE:MNRL – Get Rating) and VAALCO Energy (NYSE:EGY – Get Rating) are both small-cap basic materials companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, earnings, dividends, profitability, analyst recommendations, valuation and risk.
This is a summary of current recommendations for Brigham Minerals and VAALCO Energy, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Brigham Minerals presently has a consensus target price of $32.60, suggesting a potential upside of 0.52%. Given Brigham Minerals’ higher possible upside, research analysts plainly believe Brigham Minerals is more favorable than VAALCO Energy.
This table compares Brigham Minerals and VAALCO Energy’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Brigham Minerals pays an annual dividend of $0.64 per share and has a dividend yield of 2.0%. VAALCO Energy pays an annual dividend of $0.13 per share and has a dividend yield of 1.5%. Brigham Minerals pays out 41.8% of its earnings in the form of a dividend. VAALCO Energy pays out 9.2% 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. Brigham Minerals has increased its dividend for 2 consecutive years. Brigham Minerals is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Institutional and Insider Ownership
68.8% of Brigham Minerals shares are held by institutional investors. Comparatively, 39.9% of VAALCO Energy shares are held by institutional investors. 3.9% of Brigham Minerals shares are held by company insiders. Comparatively, 2.0% of VAALCO Energy shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares Brigham Minerals and VAALCO Energy’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Brigham Minerals||$161.22 million||12.17||$50.28 million||$1.53||21.20|
|VAALCO Energy||$199.07 million||2.52||$81.84 million||$1.41||6.04|
VAALCO Energy has higher revenue and earnings than Brigham Minerals. VAALCO Energy is trading at a lower price-to-earnings ratio than Brigham Minerals, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Brigham Minerals has a beta of 1.94, suggesting that its stock price is 94% more volatile than the S&P 500. Comparatively, VAALCO Energy has a beta of 1.77, suggesting that its stock price is 77% more volatile than the S&P 500.
Brigham Minerals beats VAALCO Energy on 11 of the 17 factors compared between the two stocks.
About Brigham Minerals (Get Rating)
Brigham Minerals, Inc. owns and operates a portfolio of mineral and royalty interests in the continental United States. The company primarily holds mineral and royalty interests in the Delaware and Midland Basins in West Texas and New Mexico; the South Central Oklahoma Oil Province and Sooner Trend Anadarko Basin Canadian and Kingfisher Counties plays in the Anadarko Basin of Oklahoma; the Denver-Julesburg Basin in Colorado; and Wyoming and the Williston Basin in North Dakota. As of December 31, 2021, it had mineral and royalty interests in approximately 92,375 net royalty acres; and owned mineral and royalty interests in 8,595 gross productive horizontal wells, which consisted of 7,909 oil wells and 688 natural gas wells. The company was founded in 2012 and is headquartered in Austin, Texas.
About VAALCO Energy (Get Rating)
VAALCO Energy, Inc., an independent energy company, acquires, explores for, develops, and produces crude oil and natural gas. The company holds Etame production sharing contract related to the Etame Marin block located offshore in the Republic of Gabon in West Africa. It also owns interests in an undeveloped block offshore Equatorial Guinea, West Africa. VAALCO Energy, Inc. was incorporated in 1985 and is headquartered in Houston, Texas.
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