Financial Review: Vital Energy (NYSE:VTLE) versus Groove Botanicals (OTCMKTS:GRVE)

Groove Botanicals (OTCMKTS:GRVE) and Vital Energy (NYSE:VTLE) 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 earnings, analyst recommendations, risk, valuation, institutional ownership, profitability and dividends.

Insider & Institutional Ownership

86.5% of Vital Energy shares are owned by institutional investors. 55.1% of Groove Botanicals shares are owned by company insiders. Comparatively, 1.2% of Vital Energy shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Groove Botanicals	N/A	N/A	-9,886.49%
Vital Energy	13.97%	11.58%	5.76%

Analyst Recommendations

This is a summary of recent ratings for Groove Botanicals and Vital Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Groove Botanicals	0	0	0	0	N/A
Vital Energy	3	5	4	0	2.08

Vital Energy has a consensus price target of $47.83, indicating a potential upside of 73.62%. Given Vital Energy’s higher probable upside, analysts clearly believe Vital Energy is more favorable than Groove Botanicals.

Risk and Volatility

Groove Botanicals has a beta of 1.57, meaning that its stock price is 57% more volatile than the S&P 500. Comparatively, Vital Energy has a beta of 3.16, meaning that its stock price is 216% more volatile than the S&P 500.

Earnings & Valuation

This table compares Groove Botanicals and Vital Energy”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Groove Botanicals	N/A	N/A	-$200,000.00	N/A	N/A
Vital Energy	$1.84 billion	0.55	$695.08 million	$24.13	1.14

Vital Energy has higher revenue and earnings than Groove Botanicals.

Summary

Vital Energy beats Groove Botanicals on 9 of the 10 factors compared between the two stocks.

About Groove Botanicals

Groove Botanicals, Inc. operates as an independent oil and gas producer. It also focuses on assembling a portfolio of EV battery technologies. The company was formerly known as Avalon Oil & Gas, Inc. and changed its name to Groove Botanicals, Inc. in May 2018. Groove Botanicals, Inc. was incorporated in 1991 and is headquartered in Minneapolis, Minnesota.

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.