Reviewing Advantage Oil & Gas (AAV) and Its Rivals

Advantage Oil & Gas (NYSE: AAV) is one of 246 publicly-traded companies in the “Oil & Gas Exploration and Production” industry, but how does it compare to its peers? We will compare Advantage Oil & Gas to related businesses based on the strength of its institutional ownership, analyst recommendations, profitability, valuation, risk, dividends and earnings.

Risk & Volatility

Advantage Oil & Gas has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500. Comparatively, Advantage Oil & Gas’ peers have a beta of 1.42, indicating that their average share price is 42% more volatile than the S&P 500.

Profitability

This table compares Advantage Oil & Gas and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Advantage Oil & Gas 24.83% 3.86% 3.14%
Advantage Oil & Gas Competitors -431.57% -1.05% 2.10%

Earnings & Valuation

This table compares Advantage Oil & Gas and its peers revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Advantage Oil & Gas $181.52 million $164.32 million 23.26
Advantage Oil & Gas Competitors $1.40 billion $601.51 million -1.06

Advantage Oil & Gas’ peers have higher revenue and earnings than Advantage Oil & Gas. Advantage Oil & Gas is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a summary of current recommendations for Advantage Oil & Gas and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Advantage Oil & Gas 0 2 2 0 2.50
Advantage Oil & Gas Competitors 1448 7500 12166 258 2.53

Advantage Oil & Gas currently has a consensus target price of $10.38, suggesting a potential upside of 93.93%. As a group, “Oil & Gas Exploration and Production” companies have a potential upside of 33.62%. Given Advantage Oil & Gas’ higher possible upside, research analysts plainly believe Advantage Oil & Gas is more favorable than its peers.

Insider and Institutional Ownership

54.2% of Advantage Oil & Gas shares are owned by institutional investors. Comparatively, 61.8% of shares of all “Oil & Gas Exploration and Production” companies are owned by institutional investors. 12.2% of shares of all “Oil & Gas Exploration and Production” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Advantage Oil & Gas peers beat Advantage Oil & Gas on 8 of the 13 factors compared.

Advantage Oil & Gas Company Profile

Advantage Oil & Gas Ltd. is an intermediate natural gas and liquids development and production company. The Company is engaged in the business of natural gas exploitation, development, acquisition and production in the Province of Alberta. The Company focuses on the development of Montney resource play at Glacier, Alberta in Western Canada. The Company has drilled over 10 Montney gas wells. The Glacier property lies along the Alberta side of the border with British Columbia between Grande Prairie, Alberta and Dawson Creek, British Columbia. The primary zones of interest are within the Triassic Montney and Doig formation siltstones. The Glacier property consists of over 90 net sections of land with Doig/Montney interests. It owns and operates a gas plant located at 5-02-76-12W6. It also holds interest in approximately 20 additional sections of Doig/Montney land rights in the Glacier, Valhalla and Wembley area proximal to its existing land holdings.

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