Analyzing Advantage Energy (OTCMKTS:AAVVF) and Riley Exploration Permian (NYSE:REPX)

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

Volatility & Risk

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Riley Exploration Permian and Advantage Energy, as reported by MarketBeat.

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

Riley Exploration Permian presently has a consensus price target of $47.00, indicating a potential upside of 26.62%. Advantage Energy has a consensus price target of $13.75, indicating a potential upside of 100.15%. Given Advantage Energy’s higher possible upside, analysts plainly believe Advantage Energy is more favorable than Riley Exploration Permian.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Riley Exploration Permian	$375.05 million	2.13	$111.59 million	$5.64	6.58
Advantage Energy	$400.81 million	2.86	$75.26 million	$0.20	34.35

Riley Exploration Permian has higher earnings, but lower revenue 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.

Insider & Institutional Ownership

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

Profitability

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

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

Summary

Riley Exploration Permian beats Advantage Energy on 8 of the 13 factors compared between the two stocks.

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.

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.