Analyzing VOC Energy Trust (VOC) and Callon Petroleum (CPE)

VOC Energy Trust (NYSE: VOC) and Callon Petroleum (NYSE:CPE) are both oils/energy companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, dividends and valuation.

Insider and Institutional Ownership

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10.8% of VOC Energy Trust shares are owned by institutional investors. 0.6% of Callon Petroleum shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.



Analyst Recommendations

This is a summary of current ratings for VOC Energy Trust and Callon Petroleum, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
VOC Energy Trust 0 0 0 0 N/A
Callon Petroleum 0 5 15 0 2.75

Callon Petroleum has a consensus target price of $16.32, suggesting a potential upside of 24.36%. Given Callon Petroleum’s higher probable upside, analysts plainly believe Callon Petroleum is more favorable than VOC Energy Trust.

Profitability

This table compares VOC Energy Trust and Callon Petroleum’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
VOC Energy Trust 91.41% 10.42% 10.42%
Callon Petroleum 32.86% 5.02% 3.57%

Valuation & Earnings

This table compares VOC Energy Trust and Callon Petroleum’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
VOC Energy Trust $9.20 million 9.09 $8.41 million N/A N/A
Callon Petroleum $366.47 million 7.23 $120.42 million $0.42 31.24

Callon Petroleum has higher revenue and earnings than VOC Energy Trust.

Risk and Volatility

VOC Energy Trust has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500. Comparatively, Callon Petroleum has a beta of 1.18, meaning that its share price is 18% more volatile than the S&P 500.

Dividends

VOC Energy Trust pays an annual dividend of $0.44 per share and has a dividend yield of 8.9%. Callon Petroleum does not pay a dividend.

Summary

Callon Petroleum beats VOC Energy Trust on 7 of the 13 factors compared between the two stocks.

VOC Energy Trust Company Profile

VOC Energy Trust acquires and holds a term net profits interest of the net proceeds from production and sale of the interests in oil and natural gas properties in the states of Kansas and Texas. It has a 80% term net profits interest of the net proceeds on the underlying properties. As of December 31, 2016, its underlying properties had interests in 496.6 net producing wells and 55,851.6 net acres; and had proved reserves of approximately 3.2 million barrels of oil equivalent (MMBoe) attributable to the portion of the Kansas underlying properties, and approximately 5.1 MMBoe attributable to the Texas underlying properties. The company was founded in 2010 and is based in Houston, Texas.

Callon Petroleum Company Profile

Callon Petroleum Company, an independent oil and natural gas company, focuses on the acquisition, development, exploration, and exploitation of unconventional onshore, oil, and natural gas reserves in the Permian Basin in West Texas. As of December 31, 2017, its estimated net proved reserves totaled 137.0 million barrel of oil equivalent. The company was founded in 1950 and is headquartered in Natchez, Mississippi.

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