Analyzing Advantage Energy (OTCMKTS:AAVVF) and VOC Energy Trust (NYSE:VOC)

VOC Energy Trust (NYSE:VOC) and Advantage Energy (OTCMKTS:AAVVF) are both small-cap energy companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, profitability, valuation and risk.

Analyst Recommendations

This is a summary of current ratings and price targets for VOC Energy Trust and Advantage Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
VOC Energy Trust	1	0	0	0	1.00
Advantage Energy	0	5	2	1	2.50

Profitability

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

	Net Margins	Return on Equity	Return on Assets
VOC Energy Trust	91.51%	68.92%	68.92%
Advantage Energy	11.58%	4.92%	2.67%

Valuation & Earnings

This table compares VOC Energy Trust and Advantage Energy”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
VOC Energy Trust	$8.62 million	7.00	$7.39 million	$0.41	8.66
Advantage Energy	$500.25 million	2.56	$37.97 million	$0.35	21.89

Advantage Energy has higher revenue and earnings than VOC Energy Trust. VOC Energy Trust is trading at a lower price-to-earnings ratio than Advantage Energy, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

7.8% of Advantage Energy shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

VOC Energy Trust has a beta of 0.18, meaning that its stock price is 82% less volatile than the S&P 500. Comparatively, Advantage Energy has a beta of 0.76, meaning that its stock price is 24% less volatile than the S&P 500.

Summary

Advantage Energy beats VOC Energy Trust on 8 of the 13 factors compared between the two stocks.

About VOC Energy Trust

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. The company has an 80% term net profits interest of the net proceeds on the underlying properties. As of December 31, 2021, its underlying properties had interests in 452.5 net producing wells and 51,147.2 net acres. VOC Energy Trust was incorporated in 2010 and is based in Houston, Texas.

About Advantage Energy

Advantage Energy Ltd., together with its subsidiaries, engages in the acquisition, exploitation, development, and production natural gas, crude oil, and natural gas liquids (NGLs) in the Province of Alberta, Canada. Its assets are located approximately 4 to 80 km northwest of the city of Grande Prairie, Alberta. The company was formerly known as Advantage Oil & Gas Ltd. and changed its name to Advantage Energy Ltd. in May 2021. Advantage Energy Ltd. was founded in 2001 and is headquartered in Calgary, Canada.