EQT Corporation (NYSE: EQT) and Advantage Oil & Gas (NYSE:AAV) are both oils/energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, earnings, analyst recommendations, dividends, profitability, institutional ownership and valuation.

Profitability

This table compares EQT Corporation and Advantage Oil & Gas’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
EQT Corporation 0.20% 0.91% 0.55%
Advantage Oil & Gas 24.83% 3.86% 3.14%

Dividends

EQT Corporation pays an annual dividend of $0.12 per share and has a dividend yield of 0.2%. Advantage Oil & Gas does not pay a dividend. EQT Corporation pays out 400.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Valuation & Earnings

This table compares EQT Corporation and Advantage Oil & Gas’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
EQT Corporation $2.46 billion 4.39 $1.53 billion $0.03 2,078.69
Advantage Oil & Gas $184.11 million 6.41 $166.67 million $0.23 27.61

EQT Corporation has higher revenue and earnings than Advantage Oil & Gas. Advantage Oil & Gas is trading at a lower price-to-earnings ratio than EQT Corporation, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

EQT Corporation has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500. Comparatively, Advantage Oil & Gas has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500.

Institutional and Insider Ownership

90.6% of EQT Corporation shares are held by institutional investors. Comparatively, 53.8% of Advantage Oil & Gas shares are held by institutional investors. 1.0% of EQT Corporation shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for EQT Corporation and Advantage Oil & Gas, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EQT Corporation 0 4 13 0 2.76
Advantage Oil & Gas 0 1 1 0 2.50

EQT Corporation currently has a consensus target price of $80.64, indicating a potential upside of 29.35%. Advantage Oil & Gas has a consensus target price of $11.00, indicating a potential upside of 73.23%. Given Advantage Oil & Gas’ higher possible upside, analysts plainly believe Advantage Oil & Gas is more favorable than EQT Corporation.

EQT Corporation Company Profile

EQT Corporation is a natural gas company. The Company operates through three segments: EQT Production, EQT Gathering and EQT Transmission. The EQT Production segment includes its exploration for, and development and production of, natural gas, natural gas liquids and a limited amount of crude oil, primarily in the Appalachian Basin. The EQT Production segment also includes the marketing activities of the Company. EQT Production’s properties are located in Pennsylvania, West Virginia, Kentucky and Virginia. The operations of EQT Gathering include the natural gas gathering activities of the Company, consisting solely of assets that are owned and operated by EQT Midstream Partners, LP (EQM). The operations of EQT Transmission include the natural gas transmission and storage activities of the Company, consisting solely of assets that are owned and operated by EQM. EQT Transmission focuses on various transmission projects, including Mountain Valley Pipeline and Transmission Expansion.

Advantage Oil & Gas Company Profile

Advantage Oil & Gas Ltd. is an intermediate natural gas and liquids development and production company. The Company is engaged in the business of natural gas exploitation, development, acquisition and production in the Province of Alberta. The Company focuses on the development of Montney resource play at Glacier, Alberta in Western Canada. The Company has drilled over 10 Montney gas wells. The Glacier property lies along the Alberta side of the border with British Columbia between Grande Prairie, Alberta and Dawson Creek, British Columbia. The primary zones of interest are within the Triassic Montney and Doig formation siltstones. The Glacier property consists of over 90 net sections of land with Doig/Montney interests. It owns and operates a gas plant located at 5-02-76-12W6. It also holds interest in approximately 20 additional sections of Doig/Montney land rights in the Glacier, Valhalla and Wembley area proximal to its existing land holdings.

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