Head-To-Head Survey: Evolution Petroleum (NYSE:EPM) vs. Mexco Energy (NYSE:MXC)

Evolution Petroleum (NYSE:EPM) and Mexco Energy (NYSE:MXC) are both small-cap oils/energy companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, profitability, earnings, analyst recommendations, institutional ownership and valuation.

Profitability

This table compares Evolution Petroleum and Mexco Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Evolution Petroleum	5.36%	4.65%	2.52%
Mexco Energy	17.59%	6.94%	6.37%

Insider & Institutional Ownership

60.1% of Evolution Petroleum shares are owned by institutional investors. Comparatively, 5.9% of Mexco Energy shares are owned by institutional investors. 10.1% of Evolution Petroleum shares are owned by company insiders. Comparatively, 53.1% of Mexco Energy shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Evolution Petroleum and Mexco Energy”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Evolution Petroleum	$87.17 million	2.04	$4.08 million	$0.05	106.00
Mexco Energy	$6.61 million	3.67	$1.35 million	$0.57	20.75

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

Risk & Volatility

Evolution Petroleum has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500. Comparatively, Mexco Energy has a beta of 0.55, meaning that its share price is 45% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and price targets for Evolution Petroleum and Mexco Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Evolution Petroleum	0	0	1	1	3.50
Mexco Energy	0	0	0	0	0.00

Evolution Petroleum presently has a consensus target price of $6.50, suggesting a potential upside of 22.64%. Given Evolution Petroleum’s stronger consensus rating and higher probable upside, research analysts plainly believe Evolution Petroleum is more favorable than Mexco Energy.

Summary

Evolution Petroleum beats Mexco Energy on 9 of the 15 factors compared between the two stocks.

About Evolution Petroleum

Evolution Petroleum Corporation, an energy company, engages in the development, production, ownership, and exploitation of onshore oil and gas properties in the United States. The company holds a non-operated interests in the SCOOP and STACK plays located in Central Oklahoma; the Chaveroo Field situated in Chaves and Roosevelt Counties, New Mexico; the Jonah Field located in Sublette County, Wyoming; the Williston Basin situated in Williston, North Dakota; the Barnett Shale field located in North Texas; the Hamilton Dome situated in Hot Springs County, Wyoming; and the Delhi Field, an onshore CO2-EOR project located in northeast Louisiana in Franklin, Madison, and Richland Parishes, as well as small overriding royalty interests in four onshore central Texas wells. The company was founded in 2003 and is based in Houston, Texas.

About Mexco Energy

Mexco Energy Corporation, an independent oil and gas company, engages in the acquisition, exploration, development, and production of natural gas, crude oil, condensate, and natural gas liquids in the United States. It owns partial interests in approximately 6,400 gross producing wells located in the states of Texas, New Mexico, Oklahoma, Louisiana, Alabama, Mississippi, Arkansas, Wyoming, Kansas, Colorado, Montana, Virginia, North Dakota, and Ohio. It also owned leasehold mineral, royalty, and other interests in approximately 2,768 net acres. The company was formerly known as Miller Oil Company and changed its name to Mexco Energy Corporation in April 1980. Mexco Energy Corporation was incorporated in 1972 and is based in Midland, Texas.