Head to Head Contrast: VAALCO Energy (NYSE:EGY) & Repsol (OTCMKTS:REPYY)

VAALCO Energy (NYSE:EGY) and Repsol (OTCMKTS:REPYY) are both oils/energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, valuation, analyst recommendations and dividends.

Analyst Ratings

This is a summary of current ratings and recommmendations for VAALCO Energy and Repsol, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
VAALCO Energy	0	0	1	0	3.00
Repsol	0	4	0	1	2.40

VAALCO Energy presently has a consensus target price of $8.00, suggesting a potential upside of 103.30%. Given VAALCO Energy’s stronger consensus rating and higher probable upside, equities analysts plainly believe VAALCO Energy is more favorable than Repsol.

Profitability

This table compares VAALCO Energy and Repsol’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
VAALCO Energy	17.93%	15.63%	8.72%
Repsol	3.10%	11.40%	5.32%

Institutional & Insider Ownership

50.3% of VAALCO Energy shares are owned by institutional investors. Comparatively, 0.3% of Repsol shares are owned by institutional investors. 1.3% of VAALCO Energy shares are owned by company insiders. Comparatively, 1.0% of Repsol shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

VAALCO Energy pays an annual dividend of $0.25 per share and has a dividend yield of 6.4%. Repsol pays an annual dividend of $0.76 per share and has a dividend yield of 5.7%. VAALCO Energy pays out 45.5% of its earnings in the form of a dividend. Repsol pays out 49.4% 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. VAALCO Energy is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk & Volatility

VAALCO Energy has a beta of 1.16, indicating that its share price is 16% more volatile than the S&P 500. Comparatively, Repsol has a beta of 0.64, indicating that its share price is 36% less volatile than the S&P 500.

Earnings & Valuation

This table compares VAALCO Energy and Repsol”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
VAALCO Energy	$506.42 million	0.82	$60.35 million	$0.55	7.15
Repsol	$61.38 billion	0.25	$3.43 billion	$1.54	8.62

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

Summary

VAALCO Energy beats Repsol on 12 of the 17 factors compared between the two stocks.

About VAALCO Energy

VAALCO Energy, Inc., an independent energy company, engages in the acquisition, exploration, development, and production of crude oil, natural gas, and natural gas liquids in Gabon, Egypt, Equatorial Guinea, and Canada. The company holds 58.8% interest in the Etame production sharing contract related to the Etame Marin block covering an area of approximately 46,200 gross acres located offshore in the Republic of Gabon in West Africa. It also owns 100% interest in the Eastern Desert, which contains West Gharib, West Bakr and North West Gharib merged concessions covering as area of approximately 45,067 acres, as well as Western Desert, which contains the South Ghazalat concession covering as area of approximately 7,340 acres located in Egypt. In addition, the company production and working interests in Cardium light oil and Mannville liquids-rich gas assets covering as area of 47,400 gross acres located near the north of Calgary, Alberta; and an undeveloped block offshore Equatorial Guinea, West Africa. VAALCO Energy, Inc. was incorporated in 1985 and is headquartered in Houston, Texas.

About Repsol

Repsol, S.A. operates as a multi-e energy company worldwide. Its Upstream segment engages in the exploration, development, and production of crude oil and natural gas reserves, as well as develops low-carbon geological solutions. The company's Industrial segment is involved in refining activities and petrochemicals business; the trading, transport, and sale of crude oil, natural gas, and fuels; and development of hydrogen, biomethane, sustainable biofuels, and synthetic fuels. Its Customer segment is involved in mobility; and sale of fuel products, electricity and gas, lubricants, and other specialties. The company's Low-Carbon Generation segment engages in the low-emissions electricity generation and renewable sources. The company also offers asphalt products; installs, operates, and manages service stations; provides maritime services; constructs and operates oil refineries; explores and produces hydrocarbons; offers human resource; distributes and supplies electricity; and develops new energy projects, solar, and wind projects, as well as produces and sells chemical products and lubricants. In addition, it is involved in fuel and special products sale, research, trading and transport, insurance and reinsurance, safety, and financing activities; development of production processes, storage, transport, use, consumption, and transformation of hydrogen; decarbonization activities; and promotion, design, construction, and operation of molecular recycling facilities. Further, the company produces synthetic oil cloths; and invests in liquefaction plant project. The company was formerly known as Repsol YPF, S.A. and changed its name to Repsol, S.A. in May 2012. Repsol, S.A. was founded in 1927 and is headquartered in Madrid, Spain.