Baytex Energy (NYSE:BTE) vs. Vermilion Energy (NYSE:VET) Head-To-Head Analysis

Vermilion Energy (NYSE:VET) and Baytex Energy (NYSE:BTE) are both mid-cap energy companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, risk, analyst recommendations, profitability, dividends, valuation and earnings.

Dividends

Vermilion Energy pays an annual dividend of $0.39 per share and has a dividend yield of 2.9%. Baytex Energy pays an annual dividend of $0.06 per share and has a dividend yield of 1.1%. Vermilion Energy pays out -18.5% of its earnings in the form of a dividend. Baytex Energy pays out -9.0% 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. Vermilion Energy has raised its dividend for 3 consecutive years. Vermilion Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings and Valuation

This table compares Vermilion Energy and Baytex Energy”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vermilion Energy	$1.30 billion	1.58	-$467.78 million	($2.11)	-6.41
Baytex Energy	$2.56 billion	1.45	-$432.12 million	($0.67)	-8.02

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

Analyst Recommendations

This is a summary of current recommendations for Vermilion Energy and Baytex Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vermilion Energy	1	6	2	0	2.11
Baytex Energy	0	6	2	3	2.73

Vermilion Energy presently has a consensus price target of $15.00, indicating a potential upside of 10.91%. Given Vermilion Energy’s higher possible upside, analysts clearly believe Vermilion Energy is more favorable than Baytex Energy.

Risk and Volatility

Vermilion Energy has a beta of 0.58, meaning that its share price is 42% less volatile than the S&P 500. Comparatively, Baytex Energy has a beta of 0.4, meaning that its share price is 60% less volatile than the S&P 500.

Profitability

This table compares Vermilion Energy and Baytex Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vermilion Energy	-22.48%	5.26%	2.15%
Baytex Energy	-26.43%	-7.77%	-4.86%

Insider and Institutional Ownership

31.9% of Vermilion Energy shares are owned by institutional investors. Comparatively, 46.1% of Baytex Energy shares are owned by institutional investors. 2.6% of Vermilion Energy shares are owned by company insiders. Comparatively, 0.8% of Baytex Energy shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Vermilion Energy beats Baytex Energy on 11 of the 17 factors compared between the two stocks.

About Vermilion Energy

Vermilion Energy Inc., together with its subsidiaries, engages in the acquisition, exploration, development, and production of petroleum and natural gas. The company has properties in West Central Alberta, southeast Saskatchewan, Manitoba, and West Pembina in Canada; Wyoming in the United States; southwest Bordeaux and Paris Basin in France; the Netherlands; Germany; Ireland; Croatia; Slovakia; and Australia. The company was founded in 1994 and is headquartered in Calgary, Canada.

About Baytex Energy

Baytex Energy Corp. is an oil & gas exploration and production company. The firm engages in the acquisition, development and production of crude oil and natural gas in the Western Canadian Sedimentary Basin and in the Eagle Ford in the United States. The company was founded on June 3, 1993 and is headquartered in Calgary, Canada.