Head to Head Analysis: Vital Energy (NYSE:VTLE) and 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 stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, risk, dividends, institutional ownership and profitability.

Risk & Volatility

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

Institutional and Insider Ownership

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

Analyst Ratings

This is a summary of recent ratings for Groove Botanicals and Vital Energy, as provided 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, suggesting a potential upside of 81.60%. Given Vital Energy’s higher possible upside, analysts plainly believe Vital Energy is more favorable than Groove Botanicals.

Valuation & Earnings

This table compares Groove Botanicals and Vital Energy”s revenue, earnings per share (EPS) 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	0.53	$695.08 million	$24.13	1.09

Vital Energy has higher revenue and earnings than Groove Botanicals.

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%

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.