Comstock Resources (NYSE: CRK) and Advantage Oil & Gas (NYSE:AAV) are both small-cap energy companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, earnings, institutional ownership, analyst recommendations, risk and dividends.

Earnings and Valuation

This table compares Comstock 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
Comstock Resources $175.71 million 0.71 -$135.13 million ($8.91) -0.91
Advantage Oil & Gas $122.28 million 6.39 -$11.88 million $0.27 15.56

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

Insider & Institutional Ownership

52.7% of Comstock Resources shares are held by institutional investors. Comparatively, 54.8% of Advantage Oil & Gas shares are held by institutional investors. 11.6% of Comstock Resources shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Comstock Resources -53.79% N/A -9.98%
Advantage Oil & Gas 27.06% 3.05% 2.48%

Volatility and Risk

Comstock Resources has a beta of -0.46, indicating that its stock price is 146% less volatile than the S&P 500. Comparatively, Advantage Oil & Gas has a beta of 0.86, indicating that its stock price is 14% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Comstock Resources and Advantage Oil & Gas, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Comstock Resources 1 3 3 0 2.29
Advantage Oil & Gas 0 2 1 0 2.33

Comstock Resources currently has a consensus target price of $11.40, indicating a potential upside of 40.22%. Advantage Oil & Gas has a consensus target price of $10.17, indicating a potential upside of 142.06%. Given Advantage Oil & Gas’ stronger consensus rating and higher probable upside, analysts plainly believe Advantage Oil & Gas is more favorable than Comstock Resources.

Summary

Advantage Oil & Gas beats Comstock Resources on 11 of the 14 factors compared between the two stocks.

About Comstock Resources

Comstock Resources, Inc. is an energy company engaged in the acquisition, exploration, development and production of oil and natural gas in the United States. The Company operates in the segment of exploration and production of oil and natural gas. The Company’s oil and gas operations are concentrated in Texas and Louisiana. Its operations are focused in two operating areas: East Texas/North Louisiana and South Texas. The Company’s properties in the East Texas/North Louisiana region include approximately 80,660 acres in the Haynesville or Bossier shale formations. The Company’s Eagleville field includes approximately 30,220 acres located in the oil window of the Eagle Ford shale in South Texas. The Company owns interests in over 1,575 producing oil and natural gas wells, and operates over 950 of these wells. The Company owns interests in over 20 wells in the Rosita field, located in Duval County, Texas.

About Advantage Oil & Gas

Advantage Oil & Gas Ltd. is an intermediate natural gas and liquids development and production company. The Company is engaged in the business of natural gas exploitation, development, acquisition and production in the Province of Alberta. The Company focuses on the development of Montney resource play at Glacier, Alberta in Western Canada. The Company has drilled over 10 Montney gas wells. The Glacier property lies along the Alberta side of the border with British Columbia between Grande Prairie, Alberta and Dawson Creek, British Columbia. The primary zones of interest are within the Triassic Montney and Doig formation siltstones. The Glacier property consists of over 90 net sections of land with Doig/Montney interests. It owns and operates a gas plant located at 5-02-76-12W6. It also holds interest in approximately 20 additional sections of Doig/Montney land rights in the Glacier, Valhalla and Wembley area proximal to its existing land holdings.

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