Vaalco Energy Inc (EGY) vs SandRidge Energy, Inc. (SD)

Vaalco Energy Inc and SandRidge Energy, Inc. are both Oil & Gas E&P companies. Vaalco Energy Inc is the larger, with a market value of $632.2M against $515.7M — 1.2× the size. Vaalco Energy Inc has negative trailing earnings, so its P/E is not meaningful; SandRidge Energy, Inc. trades at 6.3×. SandRidge Energy, Inc. grew revenue faster over the last twelve months: 23.2% against −25.5%. SandRidge Energy, Inc. has the higher net margin (46.1% vs −31.1%) and the higher return on invested capital (10.8% vs −3.95%). Both pay a dividend; Vaalco Energy Inc yields more (4.03% vs 3.50%). Across the 20 metrics below, SandRidge Energy, Inc. leads on 15 and Vaalco Energy Inc on 5.

Valuation

Metric EGY SD Oil & Gas E&P median
P/E n/m 6.31 11.01
P/S 1.85 2.92 1.98
P/B 1.70 0.97 1.30
Price to free cash flow n/m 15.25 10.68
EV/EBITDA 12.56 3.68 5.09
EV/Sales 2.43 2.46 2.63
Earnings yield (17.10%) 15.84% 5.78%
Free cash flow yield (20.67%) 6.56% 4.91%

Profitability

Metric EGY SD Oil & Gas E&P median
Gross margin 100.00% 71.89% 80.41%
Operating margin (10.44%) 41.11% 21.39%
Net margin (31.11%) 46.06% 14.17%
Free cash flow margin (38.30%) 19.18% 8.18%
Return on equity (24.40%) 16.22% 10.05%
Return on assets (11.26%) 13.06% 5.81%
Return on invested capital (3.95%) 10.81% 6.32%

Growth

Metric EGY SD Oil & Gas E&P median
Revenue growth (TTM) (25.46%) 23.23% 9.94%
EPS growth (last fiscal year) (171.43%) 12.43% (10.50%)
Revenue growth, 5-year CAGR 39.84% 6.34% 18.67%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric EGY SD Oil & Gas E&P median
Debt to equity 0.60 0.00 0.28
Current ratio 0.44 2.62 0.96
Net debt to EBITDA 0.65 (1.08) 0.89

Dividend

Metric EGY SD Oil & Gas E&P median
Dividend yield 4.03% 3.50% 3.29%
Payout ratio — 0.22 0.35

Size

Metric EGY SD Oil & Gas E&P median
Market cap 632.20m 515.72m 1.04b

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