Vitesse Energy (NYSE:VTS) and Ecopetrol (NYSE:EC) Financial Contrast

Vitesse Energy (NYSE:VTS) and Ecopetrol (NYSE:EC) are both energy companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, institutional ownership, dividends and analyst recommendations.

Analyst Ratings

This is a summary of current ratings for Vitesse Energy and Ecopetrol, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vitesse Energy	1	1	3	0	2.40
Ecopetrol	1	6	0	1	2.12

Vitesse Energy currently has a consensus price target of $20.50, indicating a potential upside of 12.18%. Ecopetrol has a consensus price target of $15.34, indicating a potential downside of 13.87%. Given Vitesse Energy’s stronger consensus rating and higher probable upside, research analysts plainly believe Vitesse Energy is more favorable than Ecopetrol.

Dividends

Vitesse Energy pays an annual dividend of $1.75 per share and has a dividend yield of 9.6%. Ecopetrol pays an annual dividend of $0.64 per share and has a dividend yield of 3.6%. Vitesse Energy pays out -530.3% of its earnings in the form of a dividend. Ecopetrol pays out 33.9% 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. Vitesse Energy has raised its dividend for 2 consecutive years. Vitesse Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Vitesse Energy and Ecopetrol’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vitesse Energy	-3.95%	-0.02%	-0.02%
Ecopetrol	11.46%	14.50%	5.42%

Volatility & Risk

Vitesse Energy has a beta of 0.6, meaning that its stock price is 40% less volatile than the S&P 500. Comparatively, Ecopetrol has a beta of 0.46, meaning that its stock price is 54% less volatile than the S&P 500.

Insider & Institutional Ownership

51.6% of Vitesse Energy shares are owned by institutional investors. 13.9% of Vitesse Energy shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Vitesse Energy and Ecopetrol”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vitesse Energy	$284.48 million	2.70	$25.28 million	($0.33)	-55.38
Ecopetrol	$127,483.00 billion	0.00	$2.10 billion	$1.89	9.42

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

Summary

Vitesse Energy beats Ecopetrol on 10 of the 18 factors compared between the two stocks.

About Vitesse Energy

Vitesse Energy, Inc., together with its subsidiaries, engages in the acquisition, development, and production of non-operated oil and natural gas properties in the United States. It owns and acquires non-operated working interest and royalty interest ownership in the Williston Basin properties located in North Dakota and Montana. The company also owns non-operated interests in the Central Rockies properties located in Colorado and Wyoming. Vitesse Energy, Inc. was founded in 2014 and is based in Centennial, Colorado.

About Ecopetrol

Ecopetrol S.A. operates as an integrated energy company. The company operates through four segments: Exploration and Production; Transport and Logistics; Refining, Petrochemical and Biofuels; and Electric Power Transmission and Toll Roads Concessions. It engages in the exploration and production of oil and gas; transportation of crude oil, motor fuels, fuel oil, and other refined products, including diesel, jet, and biofuels; processing and refining crude oil; distribution of natural gas and LPG; sale of refined and petrochemical products; supplying of electric power transmission services; design, development, construction, operation, and maintenance of road and energy infrastructure projects; and supplying of information technology and telecommunications services. As of December 31, 2022, the company had approximately 9,127 kilometers of crude oil and multi-purpose pipelines. It also produces and commercializes polypropylene resins and compounds, and masterbatches; and offers industrial service sales to customers and specialized management services. It has operations in Colombia, the United States, Asia, Central America and the Caribbean, Europe, and South America. The company was formerly known as Empresa Colombiana de Petróleos and changed its name to Ecopetrol S.A. in June 2003. Ecopetrol S.A. was incorporated in 1948 and is headquartered in Bogotá, Colombia.