Contrasting Obsidian Energy (NYSE:OBE) & TORAY INDUSTRIE/ADR (NYSE:TRYIY)

Obsidian Energy (NYSE:OBE) and TORAY INDUSTRIE/ADR (OTCMKTS:TRYIY) are both oils/energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.

Profitability

This table compares Obsidian Energy and TORAY INDUSTRIE/ADR’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Obsidian Energy -87.22% -13.95% -9.57%
TORAY INDUSTRIE/ADR 3.32% 6.50% 2.83%

Institutional and Insider Ownership

11.6% of Obsidian Energy shares are owned by institutional investors. Comparatively, 0.2% of TORAY INDUSTRIE/ADR shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Obsidian Energy and TORAY INDUSTRIE/ADR’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Obsidian Energy $342.58 million 0.15 -$235.31 million ($2.94) -0.24
TORAY INDUSTRIE/ADR $21.55 billion 0.59 $715.07 million $0.89 17.42

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

Volatility and Risk

Obsidian Energy has a beta of 3.19, indicating that its share price is 219% more volatile than the S&P 500. Comparatively, TORAY INDUSTRIE/ADR has a beta of 0.38, indicating that its share price is 62% less volatile than the S&P 500.

Dividends

TORAY INDUSTRIE/ADR pays an annual dividend of $0.20 per share and has a dividend yield of 1.3%. Obsidian Energy does not pay a dividend. TORAY INDUSTRIE/ADR pays out 22.5% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of current ratings and recommmendations for Obsidian Energy and TORAY INDUSTRIE/ADR, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Obsidian Energy 3 3 0 0 1.50
TORAY INDUSTRIE/ADR 0 0 0 0 N/A

Obsidian Energy currently has a consensus price target of $1.38, indicating a potential upside of 96.43%. Given Obsidian Energy’s higher possible upside, equities analysts plainly believe Obsidian Energy is more favorable than TORAY INDUSTRIE/ADR.

Summary

TORAY INDUSTRIE/ADR beats Obsidian Energy on 9 of the 13 factors compared between the two stocks.

About Obsidian Energy

Obsidian Energy Ltd. explores for, develops, and produces oil and natural gas in western Canada. It holds interests in the Alberta Viking, Cardium, Deep Basin, and Peace River areas. The company was formerly known as Penn West Petroleum Ltd. and changed its name to Obsidian Energy Ltd. in June 2017. Obsidian Energy Ltd. was founded in 1979 and is headquartered in Calgary, Canada.

About TORAY INDUSTRIE/ADR

Toray Industries, Inc. manufactures, processes, and sells fibers and textiles, performance chemicals, carbon fiber composite materials, environment and engineering products, and life science products. The company offers filament yarns, staple fibers, and spun yarns, as well as woven and knitted fabrics of nylon, polyester, acrylics, and others; non-woven fabrics; ultra-microfiber non-woven fabric with suede-texture; and apparel products. It also provides nylon, ABS, PBT, PPS, other resins and molded products; polyolefin foam products; polyester, polyethylene, polypropylene, and other films; processed film products; raw materials for synthetic fibers and plastics; fine chemicals; electronic and information materials; and graphic materials. In addition, the company offers carbon fibers, carbon fiber composite materials, and molded products; analysis, physical evaluation, research, and other services; and pharmaceuticals, medical devices, etc. Further, it provides engineering services; condominiums; industrial equipment and machinery; IT-related equipment; water treatment membranes and related equipment; materials for housing, building, and civil engineering applications. As of March 31, 2018, Toray Industries, Inc. operated in 26 countries and regions, including Japan. The company was formerly known as Toyo Rayon Co., Ltd. and changed its name to Toray Industries, Inc. in 1970. Toray Industries, Inc. was founded in 1926 and is headquartered in Tokyo, Japan.

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