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

Profitability

This table compares Advantage Oil & Gas and TransGlobe Energy’s 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
TransGlobe Energy -7.35% -2.03% -1.28%

Valuation & Earnings

This table compares Advantage Oil & Gas and TransGlobe Energy’s 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
TransGlobe Energy $252.59 million 0.57 -$78.73 million ($0.28) -7.14

Advantage Oil & Gas has higher earnings, but lower revenue than TransGlobe Energy.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Advantage Oil & Gas and TransGlobe Energy, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Advantage Oil & Gas 0 1 2 0 2.67
TransGlobe Energy 0 0 1 0 3.00

Advantage Oil & Gas presently has a consensus target price of $5.25, suggesting a potential upside of 110.00%. Given Advantage Oil & Gas’ higher probable upside, analysts clearly believe Advantage Oil & Gas is more favorable than TransGlobe Energy.

Dividends

TransGlobe Energy pays an annual dividend of $0.04 per share and has a dividend yield of 2.0%. Advantage Oil & Gas does not pay a dividend. TransGlobe Energy pays out -14.3% of its earnings in the form of a dividend.

Insider & Institutional Ownership

59.1% of Advantage Oil & Gas shares are held by institutional investors. Comparatively, 44.9% of TransGlobe Energy shares are held by institutional investors. 4.0% of TransGlobe Energy shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Advantage Oil & Gas beats TransGlobe Energy on 6 of the 11 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.

TransGlobe Energy Company Profile

TransGlobe Energy Corporation, together with its subsidiaries, explores for, develops, and produces crude oil, natural gas, and natural gas liquids in Egypt and Canada. It holds working interests in West Gharib, West Bakr, North West Gharib, South Alamein, South Ghazalat, and North West Sitra production sharing concessions. The company was founded in 1968 and is headquartered in Calgary, Canada.

Receive News & Ratings for Advantage Oil & Gas Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Advantage Oil & Gas and related companies with MarketBeat.com's FREE daily email newsletter.