Freehold Royalties (OTCMKTS:FRHLF – Get Free Report) and Surge Energy (OTCMKTS:ZPTAF – Get Free Report) are both energy companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.
Institutional and Insider Ownership
37.0% of Freehold Royalties shares are held by institutional investors. Comparatively, 18.0% of Surge Energy shares are held by institutional investors. 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
Freehold Royalties pays an annual dividend of $1.82 per share and has a dividend yield of 21.4%. Surge Energy pays an annual dividend of $0.42 per share and has a dividend yield of 11.2%. Freehold Royalties pays out 181.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Surge Energy pays out 105.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Analyst Ratings
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Freehold Royalties | 0 | 1 | 0 | 0 | 2.00 |
Surge Energy | 0 | 0 | 1 | 0 | 3.00 |
Freehold Royalties presently has a consensus target price of $16.00, indicating a potential upside of 88.57%. Surge Energy has a consensus target price of $9.00, indicating a potential upside of 140.00%. Given Surge Energy’s stronger consensus rating and higher possible upside, analysts clearly believe Surge Energy is more favorable than Freehold Royalties.
Earnings and Valuation
This table compares Freehold Royalties and Surge Energy”s revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Freehold Royalties | N/A | N/A | N/A | $1.00 | 8.47 |
Surge Energy | N/A | N/A | N/A | $0.40 | 9.34 |
Freehold Royalties is trading at a lower price-to-earnings ratio than Surge Energy, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Freehold Royalties and Surge Energy’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Freehold Royalties | N/A | N/A | N/A |
Surge Energy | N/A | N/A | N/A |
Summary
Surge Energy beats Freehold Royalties on 5 of the 8 factors compared between the two stocks.
About Freehold Royalties
Freehold Royalties Ltd. engages in the acquiring and managing royalty interests in the crude oil, natural gas, natural gas liquids, and potash properties in Western Canada and the United States. Freehold Royalties Ltd. was founded in 1996 and is headquartered in Calgary, Canada.
About Surge Energy
Surge Energy Inc. explores, develops, and produces oil and gas in western Canada. Its principal properties are located in the areas of Sparky, Southeast Saskatchewan, Carbonates, Valhalla, and Shaunavon in Alberta and Saskatchewan. The company was formerly known as Zapata Energy Corporation and changed its name to Surge Energy Inc. in June 2010. Surge Energy Inc. was incorporated in 1998 and is headquartered in Calgary, Canada.
Receive News & Ratings for Freehold Royalties Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Freehold Royalties and related companies with MarketBeat.com's FREE daily email newsletter.