Advantage Energy (OTCMKTS:AAVVF) versus Genel Energy (OTCMKTS:GEGYY) Critical Review

Advantage Energy (OTCMKTS:AAVVF) and Genel Energy (OTCMKTS:GEGYY) are both small-cap oils/energy companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, earnings, dividends, valuation, risk and institutional ownership.

Volatility and Risk

Advantage Energy has a beta of 1.52, indicating that its stock price is 52% more volatile than the S&P 500. Comparatively, Genel Energy has a beta of 0.09, indicating that its stock price is 91% less volatile than the S&P 500.

Earnings and Valuation

This table compares Advantage Energy and Genel Energy”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Advantage Energy	$400.81 million	2.85	$75.26 million	$0.20	34.25
Genel Energy	$84.80 million	1.98	-$61.30 million	N/A	N/A

Advantage Energy has higher revenue and earnings than Genel Energy.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Advantage Energy	8.62%	2.88%	1.78%
Genel Energy	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of current recommendations for Advantage Energy and Genel Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Advantage Energy	0	1	1	1	3.00
Genel Energy	0	0	0	0	0.00

Advantage Energy currently has a consensus target price of $13.75, indicating a potential upside of 100.73%. Given Advantage Energy’s stronger consensus rating and higher possible upside, research analysts plainly believe Advantage Energy is more favorable than Genel Energy.

Institutional and Insider Ownership

7.9% of Advantage Energy shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Advantage Energy beats Genel Energy on 12 of the 12 factors compared between the two stocks.

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.

About Genel Energy

Genel Energy plc, through its subsidiaries, operates as an independent oil and gas exploration and production company. It operates through two segments, Production and Pre-production. The Production segment holds a 25% working interest in the Tawke PSC; and 44% working interest in the Taq Taq PSC. The Pre-Production segment holds a 50% working interest in Odewayne and 51% working interest in SL10B13 block located in Somaliland; and 75% working interest in Lagzira block in Morocco. Genel Energy plc was founded in 2013 and is headquartered in London, the United Kingdom.