Vermilion Energy (VET) and The Competition Critical Review

Vermilion Energy (NYSE: VET) is one of 215 public companies in the “Oil & Gas Exploration and Production” industry, but how does it compare to its competitors? We will compare Vermilion Energy to related companies based on the strength of its institutional ownership, earnings, dividends, analyst recommendations, valuation, risk and profitability.

Profitability

This table compares Vermilion Energy and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Vermilion Energy 4.45% 3.92% 1.56%
Vermilion Energy Competitors -315.90% -18.45% -0.23%

Dividends

Vermilion Energy pays an annual dividend of $2.00 per share and has a dividend yield of 5.6%. Vermilion Energy pays out 588.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Oil & Gas Exploration and Production” companies pay a dividend yield of 1.6% and pay out 194.2% of their earnings in the form of a dividend. Vermilion Energy has raised its dividend for 3 consecutive years.

Insider & Institutional Ownership

54.2% of Vermilion Energy shares are held by institutional investors. Comparatively, 62.3% of shares of all “Oil & Gas Exploration and Production” companies are held by institutional investors. 12.3% of shares of all “Oil & Gas Exploration and Production” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Vermilion Energy and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vermilion Energy 0 0 3 0 3.00
Vermilion Energy Competitors 1471 7643 12409 262 2.53

Vermilion Energy currently has a consensus price target of $52.25, indicating a potential upside of 47.31%. As a group, “Oil & Gas Exploration and Production” companies have a potential upside of 29.62%. Given Vermilion Energy’s stronger consensus rating and higher possible upside, equities analysts plainly believe Vermilion Energy is more favorable than its competitors.

Earnings & Valuation

This table compares Vermilion Energy and its competitors revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Vermilion Energy $666.64 million -$120.87 million 104.32
Vermilion Energy Competitors $1.90 billion -$449.11 million -32.19

Vermilion Energy’s competitors have higher revenue, but lower earnings than Vermilion Energy. Vermilion Energy is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Risk and Volatility

Vermilion Energy has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500. Comparatively, Vermilion Energy’s competitors have a beta of 1.42, indicating that their average stock price is 42% more volatile than the S&P 500.

Summary

Vermilion Energy beats its competitors on 9 of the 15 factors compared.

About Vermilion Energy

Vermilion Energy Inc. produces oil and gas, and focuses on the acquisition, development and optimization of producing properties in North America, the Europe and Australia. Its segments include Canada, which includes production and assets focused in West Pembina near Drayton Valley, Alberta and Northgate in southeast Saskatchewan; France, which produces oil in France; Netherlands, which produces onshore gas and interests include over 24 onshore licenses and two offshore licenses; Germany, which holds interest in a four partner consortium; Ireland, which includes a non-operating interest in the offshore Corrib gas field located approximately 83 kilometers off the northwest coast of Ireland; Australia, which holds an operated working interest in the Wandoo field located approximately 80 kilometers offshore on the northwest shelf of Australia; the United States, which has interests in approximately 97,200 net acres of land in the Powder River Basin of northeastern Wyoming, and Corporate.

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