Analyzing Alvopetro Energy (OTCMKTS:ALVOF) and Expand Energy (NASDAQ:EXE)

Expand Energy (NASDAQ:EXE) and Alvopetro Energy (OTCMKTS:ALVOF) are both energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, profitability, institutional ownership, earnings and valuation.

Volatility & Risk

Expand Energy has a beta of 0.41, indicating that its stock price is 59% less volatile than the S&P 500. Comparatively, Alvopetro Energy has a beta of 0.01, indicating that its stock price is 99% less volatile than the S&P 500.

Profitability

This table compares Expand Energy and Alvopetro Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Expand Energy	20.46%	10.33%	6.89%
Alvopetro Energy	42.13%	27.90%	19.95%

Insider & Institutional Ownership

97.9% of Expand Energy shares are owned by institutional investors. 0.2% of Expand Energy shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Expand Energy and Alvopetro Energy”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Expand Energy	$12.12 billion	1.74	$1.82 billion	$11.58	7.87
Alvopetro Energy	$57.95 million	4.19	$23.10 million	$0.74	8.78

Expand Energy has higher revenue and earnings than Alvopetro Energy. Expand Energy is trading at a lower price-to-earnings ratio than Alvopetro Energy, indicating that it is currently the more affordable of the two stocks.

Dividends

Expand Energy pays an annual dividend of $2.30 per share and has a dividend yield of 2.5%. Alvopetro Energy pays an annual dividend of $0.48 per share and has a dividend yield of 7.4%. Expand Energy pays out 19.9% of its earnings in the form of a dividend. Alvopetro Energy pays out 64.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Analyst Recommendations

This is a summary of recent ratings and price targets for Expand Energy and Alvopetro Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Expand Energy	0	6	14	3	2.87
Alvopetro Energy	0	1	0	0	2.00

Expand Energy currently has a consensus price target of $123.94, indicating a potential upside of 36.04%. Given Expand Energy’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Expand Energy is more favorable than Alvopetro Energy.

Summary

Expand Energy beats Alvopetro Energy on 11 of the 17 factors compared between the two stocks.

About Expand Energy

Expand Energy Corporation is an independent natural gas producer principally in the United States. Expand Energy Corporation, formerly known as Chesapeake Energy Corporation, is based in OKLAHOMA CITY.

About Alvopetro Energy

Alvopetro Energy Ltd. operates as an independent upstream and midstream operator. It engages in the acquisition, exploration, development, and production of hydrocarbons. The company holds interests in the Caburé and Murucututu natural gas assets, Block 182 and 183 exploration assets, and Bom Lugar and Mãe-da-lua oil fields, which covers an area of approximately 22,166 acres in the Recôncavo basin onshore Brazil. Alvopetro Energy Ltd. was incorporated in 2013 and is headquartered in Calgary, Canada.