Enerflex (NYSE:EFXT – Get Free Report) and Baytex Energy (NYSE:BTE – Get Free Report) are both mid-cap energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, valuation, dividends, profitability, institutional ownership, earnings and analyst recommendations.
Insider & Institutional Ownership
46.5% of Enerflex shares are held by institutional investors. Comparatively, 46.2% of Baytex Energy shares are held by institutional investors. 0.8% of Baytex Energy shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Analyst Ratings
This is a summary of recent recommendations and price targets for Enerflex and Baytex Energy, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Enerflex | 0 | 2 | 5 | 1 | 2.88 |
| Baytex Energy | 1 | 5 | 3 | 1 | 2.40 |
Profitability
This table compares Enerflex and Baytex Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Enerflex | 3.19% | 14.53% | 5.89% |
| Baytex Energy | -24.25% | -10.85% | -6.38% |
Dividends
Enerflex pays an annual dividend of $0.13 per share and has a dividend yield of 0.5%. Baytex Energy pays an annual dividend of $0.07 per share and has a dividend yield of 1.5%. Enerflex pays out 19.4% of its earnings in the form of a dividend. Baytex Energy pays out -10.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Enerflex has raised its dividend for 1 consecutive years. Baytex Energy is clearly the better dividend stock, given its higher yield and lower payout ratio.
Earnings and Valuation
This table compares Enerflex and Baytex Energy”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Enerflex | $2.57 billion | 1.20 | $64.00 million | $0.67 | 37.78 |
| Baytex Energy | $2.56 billion | 1.36 | -$432.12 million | ($0.70) | -6.78 |
Enerflex has higher revenue and earnings than Baytex Energy. Baytex Energy is trading at a lower price-to-earnings ratio than Enerflex, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Enerflex has a beta of 1.93, meaning that its share price is 93% more volatile than the S&P 500. Comparatively, Baytex Energy has a beta of 0.39, meaning that its share price is 61% less volatile than the S&P 500.
Summary
Enerflex beats Baytex Energy on 13 of the 17 factors compared between the two stocks.
About Enerflex
Enerflex Ltd. offers energy infrastructure and energy transition solutions to natural gas markets in North America, Latin America, and the Eastern Hemisphere. The company provides natural gas compression infrastructure, processing, and treated water infrastructure under contract to oil and natural gas customers; power generation rental solutions; custom and standard compression packages for reciprocating and screw compressor applications; re-engineering, re-configuration, and re-packaging of compressors for various field applications; integrated turnkey power generation, gas compression, processing facilities, natural gas compression, processing, and electric power solutions; after-market mechanical services and parts distribution, as well as maintenance solutions to the oil and natural gas industry, operations, and overhaul services; and equipment supply, parts supply, and general asset management. It also designs, engineers, manufactures, constructs, and installs modular natural gas processing equipment, low-carbon solutions, cryogenic systems, electric power solutions, and treated water solutions; and engages in the engineering, design, procurement, project management, and construction services for compression, process, treated water, and power generation equipment, as well as after-market service, parts, and operations and maintenance services for gas compression, processing, and treated water facilities in the region. The company was formerly known as Enerflex Systems Income Fund and changed its name to Enerflex Ltd. in January 2010. Enerflex Ltd. was founded in 1980 and is headquartered in Calgary, Canada.
About Baytex Energy
Baytex Energy Corp. is an oil & gas exploration and production company. The firm engages in the acquisition, development and production of crude oil and natural gas in the Western Canadian Sedimentary Basin and in the Eagle Ford in the United States. The company was founded on June 3, 1993 and is headquartered in Calgary, Canada.
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