Vaalco Energy Inc (EGY) vs Obsidian Energy (OBE)

Vaalco Energy Inc and Obsidian Energy are both Oil & Gas E&P companies. Vaalco Energy Inc and Obsidian Energy are of similar size ($616.6M and $565.9M). Vaalco Energy Inc has negative trailing earnings, so its P/E is not meaningful; Obsidian Energy trades at 29.9×. Obsidian Energy grew revenue faster over the last twelve months: −19.3% against −25.5%. Obsidian Energy has the higher net margin (4.53% vs −31.1%) and the higher return on invested capital (1.47% vs −3.95%). Across the 19 metrics below, Obsidian Energy leads on 16 and Vaalco Energy Inc on 3.

Valuation

Metric EGY OBE Oil & Gas E&P median
P/E n/m 29.94 9.67
P/S 1.62 1.40 1.76
P/B 1.49 0.61 1.19
Price to free cash flow n/m n/m 8.37
EV/EBITDA 11.34 5.42 4.59
EV/Sales 2.20 2.05 2.27
Earnings yield (19.59%) 3.34% 7.55%
Free cash flow yield (23.69%) (21.65%) 3.98%

Profitability

Metric EGY OBE Oil & Gas E&P median
Gross margin 100.00% 63.83% 79.54%
Operating margin (10.44%) 6.70% 24.01%
Net margin (31.11%) 4.53% 14.11%
Free cash flow margin (38.30%) (30.26%) 7.72%
Return on equity (24.40%) 1.99% 8.99%
Return on assets (11.26%) 1.43% 4.63%
Return on invested capital (3.95%) 1.47% 6.33%

Growth

Metric EGY OBE Oil & Gas E&P median
Revenue growth (TTM) (25.46%) (19.29%) 13.60%
EPS growth (last fiscal year) (171.43%) 117.95% (10.17%)
Revenue growth, 5-year CAGR 39.84% 15.86% 18.67%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric EGY OBE Oil & Gas E&P median
Debt to equity 0.60 0.25 0.29
Current ratio 0.44 0.78 0.92
Net debt to EBITDA 0.65 0.66 0.93

Dividend

Metric EGY OBE Oil & Gas E&P median
Dividend yield 4.62% — 3.76%
Payout ratio — — 0.33

Size

Metric EGY OBE Oil & Gas E&P median
Market cap 565.94m 616.59m 953.29m

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