Battalion Oil (NYSE:BATL) & Advantage Energy (OTCMKTS:AAVVF) Financial Review

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

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%

Volatility & Risk

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

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 endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and price targets for Battalion Oil and Advantage Energy, as provided 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 currently has a consensus target price of $18.60, indicating a potential upside of 456.89%. Advantage Energy has a consensus target price of $11.00, indicating a potential upside of 45.12%. Given Battalion Oil’s higher possible upside, research analysts clearly believe Battalion Oil is more favorable than Advantage Energy.

Earnings & Valuation

This table compares Battalion Oil and Advantage Energy’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Battalion Oil	$205.49 million	0.27	-$3.05 million	($4.46)	-0.75
Advantage Energy	$400.81 million	3.16	$75.26 million	$0.42	18.05

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.

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.