Head to Head Comparison: Advantage Oil & Gas (NYSE:AAV) & SilverBow Resources (SBOW)

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SilverBow Resources (NYSE:SBOW) and Advantage Oil & Gas (NYSE:AAV) 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 profitability, risk, institutional ownership, earnings, analyst recommendations, valuation and dividends.

Institutional and Insider Ownership

81.0% of SilverBow Resources shares are held by institutional investors. Comparatively, 59.1% of Advantage Oil & Gas shares are held by institutional investors. 2.4% of SilverBow Resources shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for SilverBow Resources and Advantage Oil & Gas, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SilverBow Resources 0 1 1 0 2.50
Advantage Oil & Gas 0 1 1 0 2.50

SilverBow Resources presently has a consensus price target of $27.50, indicating a potential downside of 5.14%. Given SilverBow Resources’ higher possible upside, equities research analysts clearly believe SilverBow Resources is more favorable than Advantage Oil & Gas.

Profitability

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

Net Margins Return on Equity Return on Assets
SilverBow Resources 23.04% 24.31% 8.52%
Advantage Oil & Gas 13.13% 0.36% 0.28%

Risk & Volatility

SilverBow Resources has a beta of 0.89, meaning that its stock price is 11% less volatile than the S&P 500. Comparatively, Advantage Oil & Gas has a beta of 0.63, meaning that its stock price is 37% less volatile than the S&P 500.

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
SilverBow Resources $195.91 million 1.73 $71.97 million $6.08 4.77
Advantage Oil & Gas $173.78 million 2.67 $73.31 million $0.20 12.50

Advantage Oil & Gas has lower revenue, but higher earnings than SilverBow Resources. SilverBow Resources 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.

Summary

SilverBow Resources beats Advantage Oil & Gas on 9 of the 12 factors compared between the two stocks.

About SilverBow Resources

SilverBow Resources, Inc., an energy company, engages in the exploration, development, and production of oil and gas from the Eagle Ford Shale in South Texas. As of December 31, 2017, it had proved reserves of 1.0 trillion cubic feet equivalent. The company was formerly known as Swift Energy Company and changed its name to SilverBow Resources, Inc. in May 2017. SilverBow Resources, Inc. was founded in 1979 and is headquartered in Houston, Texas.

About Advantage Oil & Gas

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.

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