Analyzing Battalion Oil (NYSE:BATL) and Advantage Energy (OTCMKTS:AAVVF)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Battalion Oil	-27.77%	-70.13%	-9.01%
Advantage Energy	18.36%	6.10%	4.14%

Institutional & Insider Ownership

86.0% of Battalion Oil shares are owned by institutional investors. Comparatively, 7.9% of Advantage Energy shares are owned by institutional investors. 56.9% of Battalion Oil shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Battalion Oil	$220.76 million	0.24	-$3.05 million	($4.46)	-0.73
Advantage Energy	$400.81 million	3.11	$75.26 million	$0.42	18.43

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for Battalion Oil and Advantage Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Battalion Oil	0	1	0	0	2.00
Advantage Energy	0	2	1	0	2.33

Battalion Oil presently has a consensus target price of $18.60, suggesting a potential upside of 468.79%. Advantage Energy has a consensus target price of $11.00, suggesting a potential upside of 42.07%. Given Battalion Oil’s higher possible upside, research analysts plainly believe Battalion Oil is more favorable than Advantage Energy.

Volatility and Risk

Battalion Oil has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500. Comparatively, Advantage Energy has a beta of 1.64, suggesting that its stock price is 64% more volatile than the S&P 500.

Summary

Advantage Energy beats Battalion Oil on 11 of the 14 factors compared between the two stocks.

About Battalion Oil

Battalion Oil Corporation, an independent energy company, engages in the acquisition, production, exploration, and development of onshore oil and natural gas assets in the United States. It holds interests in the Delaware Basin located in the counties of Pecos, Ward, Reeves, and Winkler, Texas. It serves independent marketers, and oil and natural gas and gas pipeline companies. The company was formerly known as Halcón Resources Corporation and changed its name to Battalion Oil Corporation in January 2020. Battalion Oil Corporation was founded in 1987 and is headquartered 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.