Panhandle Oil and Gas (NYSE:PHX) and Pengrowth Energy (OTCMKTS:PGHEF) are both small-cap oils/energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their dividends, earnings, institutional ownership, analyst recommendations, risk, valuation and profitability.

Dividends

Panhandle Oil and Gas pays an annual dividend of $0.16 per share and has a dividend yield of 1.0%. Pengrowth Energy does not pay a dividend. Panhandle Oil and Gas pays out 47.1% of its earnings in the form of a dividend.

Profitability

This table compares Panhandle Oil and Gas and Pengrowth Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Panhandle Oil and Gas 30.36% 6.93% 4.51%
Pengrowth Energy -104.39% -33.02% -12.02%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Panhandle Oil and Gas and Pengrowth Energy, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Panhandle Oil and Gas 0 0 1 0 3.00
Pengrowth Energy 0 1 0 0 2.00

Panhandle Oil and Gas currently has a consensus price target of $4.50, indicating a potential downside of 72.27%. Given Panhandle Oil and Gas’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Panhandle Oil and Gas is more favorable than Pengrowth Energy.

Institutional and Insider Ownership

60.5% of Panhandle Oil and Gas shares are held by institutional investors. Comparatively, 0.5% of Pengrowth Energy shares are held by institutional investors. 7.2% of Panhandle Oil and Gas shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Risk & Volatility

Panhandle Oil and Gas has a beta of 0.55, indicating that its share price is 45% less volatile than the S&P 500. Comparatively, Pengrowth Energy has a beta of 2.16, indicating that its share price is 116% more volatile than the S&P 500.

Valuation & Earnings

This table compares Panhandle Oil and Gas and Pengrowth Energy’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Panhandle Oil and Gas $45.03 million 6.01 $14.63 million $0.34 47.74
Pengrowth Energy $408.45 million 0.56 -$431.50 million N/A N/A

Panhandle Oil and Gas has higher earnings, but lower revenue than Pengrowth Energy.

Summary

Panhandle Oil and Gas beats Pengrowth Energy on 11 of the 14 factors compared between the two stocks.

Panhandle Oil and Gas Company Profile

Panhandle Oil and Gas Inc. acquires, develops, and manages oil and natural gas properties in the United States. The company produces and sells natural gas, crude oil, and natural gas liquids. Its principal properties are located in Oklahoma, Arkansas, Texas, New Mexico, and North Dakota. As of September 30, 2018, the company owned perpetual ownership of 258,555 net mineral acres; leased 17,203 net acres; and held working interests and royalty interests in 6,079 producing oil and natural gas wells, as well as had 69 wells in the process of being drilled or completed. It sells its products to various purchasers, including pipeline and marketing companies. The company was founded in 1926 and is based in Oklahoma City, Oklahoma.

Pengrowth Energy Company Profile

Pengrowth Energy Corporation engages in the acquisition, exploration, development, and production of oil and natural gas assets in Alberta, British Columbia, Saskatchewan, and Nova Scotia provinces in Canada. The company explores for crude oil, bitumen, natural gas, shale gas, and natural gas liquids. Its principal producing properties are the Lindbergh thermal property covering an area of 20,800 net acres situated in Calgary, Alberta; and the Groundbirch property covering an area of 12,536 net acres located in Fort St. John, British Columbia. As of December 31, 2017, the company had 239 net producing oil and natural gas wells; and 577 net non-producing wells, as well as total proved plus probable reserves of 446.6 millions of barrels of oil equivalent. Pengrowth Energy Corporation was founded in 1988 and is headquartered in Calgary, Canada.

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