Vital Energy (NYSE:VTLE) versus Carbon Energy (OTCMKTS:CRBO) Critical Analysis

Vital Energy (NYSE:VTLE) and Carbon Energy (OTCMKTS:CRBO) are both small-cap oils/energy companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, profitability, institutional ownership and earnings.

Profitability

This table compares Vital Energy and Carbon Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vital Energy	13.97%	11.58%	5.76%
Carbon Energy	N/A	N/A	N/A

Valuation and Earnings

This table compares Vital Energy and Carbon Energy’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vital Energy	$1.84 billion	0.57	$695.08 million	$24.13	1.18
Carbon Energy	N/A	N/A	N/A	N/A	N/A

Vital Energy has higher revenue and earnings than Carbon Energy.

Risk and Volatility

Vital Energy has a beta of 3.17, meaning that its share price is 217% more volatile than the S&P 500. Comparatively, Carbon Energy has a beta of -1.67, meaning that its share price is 267% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Vital Energy and Carbon Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vital Energy	3	4	4	0	2.09
Carbon Energy	0	0	0	0	N/A

Vital Energy currently has a consensus price target of $55.82, indicating a potential upside of 96.54%. Given Vital Energy’s higher possible upside, analysts clearly believe Vital Energy is more favorable than Carbon Energy.

Insider & Institutional Ownership

86.5% of Vital Energy shares are held by institutional investors. 1.2% of Vital Energy shares are held by insiders. Comparatively, 7.1% of Carbon Energy shares are held by 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.

Summary

Vital Energy beats Carbon Energy on 8 of the 9 factors compared between the two stocks.

About Vital Energy

Vital Energy, Inc., an independent energy company, engages in the acquisition, exploration, and development of oil and natural gas properties in the Permian Basin of West Texas, the United States. The company was formerly known as Laredo Petroleum, Inc. and changed its name to Vital Energy, Inc. in January 2023. Vital Energy, Inc. was founded in 2006 and is headquartered in Tulsa, Oklahoma.

About Carbon Energy

Carbon Energy Corporation, an independent oil and natural gas company, engages in the acquisition, exploration, development, and production of oil, natural gas, and natural gas liquids properties in the United States. It focuses on conventional and unconventional reservoirs, including shale, tight sand, and coalbed methane located in the Appalachian, Illinois, and Ventura Basins. It owns working interests and royalty interests in wells located in California, Illinois, Indiana, Kentucky, Ohio, Tennessee, Virginia, and West Virginia, as well as had leasehold positions. The company was formerly known as Carbon Natural Gas Company and changed its name to Carbon Energy Corporation in June 2018. Carbon Energy Corporation was founded in 2007 and is based in Denver, Colorado.