Analyzing Advantage Oil & Gas (AAV) and Memorial Production Partners (MEMP)
Advantage Oil & Gas (NYSE: AAV) and Memorial Production Partners (NASDAQ:MEMP) are both small-cap oils/energy companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, profitability, institutional ownership and earnings.
This table compares Advantage Oil & Gas and Memorial Production Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Advantage Oil & Gas||27.06%||3.05%||2.48%|
|Memorial Production Partners||-395.31%||-496.55%||-58.07%|
This is a summary of recent recommendations and price targets for Advantage Oil & Gas and Memorial Production Partners, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Advantage Oil & Gas||0||2||1||0||2.33|
|Memorial Production Partners||0||0||0||0||N/A|
Advantage Oil & Gas currently has a consensus price target of $10.17, indicating a potential upside of 250.57%. Given Advantage Oil & Gas’ higher possible upside, analysts clearly believe Advantage Oil & Gas is more favorable than Memorial Production Partners.
Earnings and Valuation
This table compares Advantage Oil & Gas and Memorial Production Partners’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Advantage Oil & Gas||$122.28 million||4.41||-$11.88 million||$0.26||11.15|
|Memorial Production Partners||N/A||N/A||N/A||($6.48)||-0.02|
Memorial Production Partners has lower revenue, but higher earnings than Advantage Oil & Gas. Memorial Production Partners is trading at a lower price-to-earnings ratio than Advantage Oil & Gas, indicating that it is currently the more affordable of the two stocks.
Memorial Production Partners pays an annual dividend of $0.06 per share and has a dividend yield of 48.0%. Advantage Oil & Gas does not pay a dividend. Memorial Production Partners pays out -0.9% of its earnings in the form of a dividend.
Insider and Institutional Ownership
54.0% of Advantage Oil & Gas shares are owned by institutional investors. Comparatively, 5.5% of Memorial Production Partners shares are owned by institutional investors. 1.5% of Memorial Production Partners shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Advantage Oil & Gas beats Memorial Production Partners on 9 of the 12 factors compared between the two stocks.
About Advantage Oil & Gas
Advantage Oil & Gas Ltd. is an intermediate natural gas and liquids development and production company. The Company is engaged in the business of natural gas exploitation, development, acquisition and production in the Province of Alberta. The Company focuses on the development of Montney resource play at Glacier, Alberta in Western Canada. The Company has drilled over 10 Montney gas wells. The Glacier property lies along the Alberta side of the border with British Columbia between Grande Prairie, Alberta and Dawson Creek, British Columbia. The primary zones of interest are within the Triassic Montney and Doig formation siltstones. The Glacier property consists of over 90 net sections of land with Doig/Montney interests. It owns and operates a gas plant located at 5-02-76-12W6. It also holds interest in approximately 20 additional sections of Doig/Montney land rights in the Glacier, Valhalla and Wembley area proximal to its existing land holdings.
About Memorial Production Partners
Memorial Production Partners LP (the Partnership) owns, acquires and exploits oil and natural gas properties in North America. The Partnership is owned by its limited partners and general partner. Its general partner is responsible for managing all of the Partnership’s operations and activities. The Partnership operates in the acquisition, exploitation, development and production of oil and natural gas properties segment. Its business activities are conducted through Memorial Production Operating LLC (OLLC) and its wholly owned subsidiaries. Its assets consist primarily of producing oil and natural gas properties, and are located in East Texas/Louisiana, Rockies, Offshore Southern California, Permian Basin and South Texas. Most of its oil and natural gas properties are located in oil and natural gas reservoirs with geologic characteristics and production profiles and capital requirements.
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