Vermilion Energy (NYSE:VET) and Ecopetrol (NYSE:EC) are both oils/energy companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, valuation, analyst recommendations, earnings, institutional ownership and profitability.
Valuation & Earnings
This table compares Vermilion Energy and Ecopetrol’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Vermilion Energy||$1.29 billion||2.76||$209.58 million||$0.77||30.29|
|Ecopetrol||$21.61 billion||1.77||$18.21 billion||$1.74||10.67|
This is a summary of current ratings and recommmendations for Vermilion Energy and Ecopetrol, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Vermilion Energy presently has a consensus price target of $40.50, suggesting a potential upside of 73.67%. Ecopetrol has a consensus price target of $20.50, suggesting a potential upside of 10.45%. Given Vermilion Energy’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Vermilion Energy is more favorable than Ecopetrol.
This table compares Vermilion Energy and Ecopetrol’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
51.7% of Vermilion Energy shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Risk and Volatility
Vermilion Energy has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500. Comparatively, Ecopetrol has a beta of 1.51, suggesting that its share price is 51% more volatile than the S&P 500.
Vermilion Energy pays an annual dividend of $2.07 per share and has a dividend yield of 8.9%. Ecopetrol pays an annual dividend of $0.96 per share and has a dividend yield of 5.2%. Vermilion Energy pays out 268.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Ecopetrol pays out 55.2% of its earnings in the form of a dividend.
Vermilion Energy beats Ecopetrol on 9 of the 15 factors compared between the two stocks.
Vermilion Energy Company Profile
Vermilion Energy Inc. acquires, explores, develops, and produces petroleum and natural gas in Canada, France, the Netherlands, Germany, Ireland, Australia, the United States, and Central and Eastern Europe. It owns 80% interest in 544,500 net acres of developed land and 87% interest in 439,800 net acres of undeveloped land, and 397 net producing natural gas wells and 3,346 net producing oil wells; and 96% interest in 248,900 net acres of developed land and 92% interest in 251,800 net acres of undeveloped land in the Aquitaine and Paris Basins, and 337 net producing oil wells and 2 net producing gas wells. The company also owns 48% interest in 930,000 net acres of land and 103 net producing gas wells; 32,600 net acres of developed and 1,149,400 net acres of undeveloped land, and 105 net producing oil wells and 8 net producing natural gas wells; and 148,700 net acres of land and 118 net producing oil wells. In addition, it owns 20% interest in the offshore Corrib gas field; and 60% interest in the Wandoo field comprises 59,600 acres; and lands of 652,800 net acres, 242,500 net acres, and 2.35 million net acres. Further, the company has 181,664 barrels of oil equivalent (Mboe) of gross proved reserves and 284,476 Mboe of gross proved plus probable reserves; 43,466 Mboe of gross proved reserves and 63,918 Mboe of gross proved plus probable reserves; 11,802 Mboe of gross proved reserves and 22,196 Mboe of gross proved plus probable reserves; 12,991 Mboe of gross proved reserves and 25,735 Mboe of gross proved plus probable reserves; 13,093 Mboe of gross proved reserves and 20,575 Mboe of gross proved plus probable reserves; 9,668 Mboe of gross proved reserves and 14,480 Mboe of gross proved plus probable reserves; 25,147 Mboe of gross proved reserves and 56,214 Mboe of gross proved plus probable reserves; and 131 Mboe of gross proved reserves and 191 Mboe of gross proved plus probable reserves. The company was founded in 1994 and is headquartered in Calgary, Canada.
Ecopetrol Company Profile
Ecopetrol S.A. operates as an integrated oil and gas company. The company operates through three segments: Exploration and Production; Transport and Logistics; and Refining, Petrochemical, and Biofuels. It produces crude oil and gas; and engages in the extraction, collection, treatment, storage, commercialization, and pumping. The company has 9,071 kilometers of transportation pipeline systems. It also transports and distributes hydrocarbons, derivatives, and products. In addition, the company produces and markets polypropylene resin, compounds, and masterbatches; and offers refined and petrochemical products, as well as industrial service sales to customers. The company was formerly known as Empresa Colombiana de PetrÃ³leos and changed its name to Ecopetrol S.A. in June 2003. Ecopetrol S.A. was founded in 1948 and is based in BogotÃ¡, Colombia.
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