Financial Review: HighPoint Resources (HPR) versus Advantage Oil & Gas (AAV)

Advantage Oil & Gas (NYSE:AAV) and HighPoint Resources (NYSE:HPR) are both oils/energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, risk, valuation, analyst recommendations and institutional ownership.

Profitability

This table compares Advantage Oil & Gas and HighPoint Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Advantage Oil & Gas N/A N/A N/A
HighPoint Resources 26.76% -0.52% -0.26%

Valuation & Earnings

This table compares Advantage Oil & Gas and HighPoint Resources’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Advantage Oil & Gas N/A N/A N/A N/A N/A
HighPoint Resources $453.00 million 1.26 $121.22 million ($0.03) -89.33

HighPoint Resources has higher revenue and earnings than Advantage Oil & Gas.

Insider and Institutional Ownership

59.1% of Advantage Oil & Gas shares are held by institutional investors. Comparatively, 99.7% of HighPoint Resources shares are held by institutional investors. 1.0% of HighPoint Resources shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and price targets for Advantage Oil & Gas and HighPoint Resources, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Advantage Oil & Gas 0 2 2 0 2.50
HighPoint Resources 1 1 5 0 2.57

Advantage Oil & Gas presently has a consensus target price of $5.50, suggesting a potential upside of ∞. HighPoint Resources has a consensus target price of $6.80, suggesting a potential upside of 153.73%. Given Advantage Oil & Gas’ higher possible upside, equities analysts clearly believe Advantage Oil & Gas is more favorable than HighPoint Resources.

Summary

HighPoint Resources beats Advantage Oil & Gas on 6 of the 9 factors compared between the two stocks.

Advantage Oil & Gas Company Profile

Advantage Oil & Gas Ltd., together with its subsidiaries, acquires, exploits, develops, and produces natural gas in the Province of Alberta, Canada. The company primarily focuses on the development and delineation of its Montney natural gas and liquids resource that includes 200 net sections of land in Glacier, Alberta. It provides natural gas and natural gas liquids primarily through marketing companies. The company was founded in 2001 and is headquartered in Calgary, Canada.

HighPoint Resources Company Profile

HighPoint Resources Corporation, together with its subsidiaries, engages in the exploration, development, and production of oil, natural gas, and natural gas liquids in the United States. It primarily holds interests in the Denver Julesburg Basin in Colorado's eastern plains and parts of southeastern Wyoming. The company is headquartered in Denver, Colorado.

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