Reviewing Amplify Energy (NYSE:AMPY) & Advantage Energy (OTCMKTS:AAVVF)

Advantage Energy (OTCMKTS:AAVVF) and Amplify Energy (NYSE:AMPY) are both small-cap oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, dividends, profitability, risk, earnings, analyst recommendations and institutional ownership.

Institutional and Insider Ownership

7.9% of Advantage Energy shares are held by institutional investors. Comparatively, 42.8% of Amplify Energy shares are held by institutional investors. 1.4% of Amplify Energy shares are held 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.

Valuation & Earnings

This table compares Advantage Energy and Amplify Energy’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Advantage Energy	$400.81 million	2.92	$75.26 million	$0.45	16.23
Amplify Energy	$307.60 million	0.85	$392.75 million	$9.66	0.68

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

Profitability

This table compares Advantage Energy and Amplify Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Advantage Energy	19.39%	6.54%	4.49%
Amplify Energy	122.36%	10.50%	5.24%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Advantage Energy and Amplify Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Advantage Energy	0	2	1	0	2.33
Amplify Energy	0	0	1	0	3.00

Advantage Energy currently has a consensus target price of $9.31, indicating a potential upside of 27.48%. Amplify Energy has a consensus target price of $9.00, indicating a potential upside of 36.16%. Given Amplify Energy’s stronger consensus rating and higher probable upside, analysts clearly believe Amplify Energy is more favorable than Advantage Energy.

Risk & Volatility

Advantage Energy has a beta of 1.73, suggesting that its stock price is 73% more volatile than the S&P 500. Comparatively, Amplify Energy has a beta of 2.1, suggesting that its stock price is 110% more volatile than the S&P 500.

Summary

Amplify Energy beats Advantage Energy on 10 of the 13 factors compared between the two stocks.

About Advantage Energy

Advantage Energy Ltd., together with its subsidiaries, engages in the acquisition, exploitation, development, and production natural gas, crude oil, and natural gas liquids (NGLs) in the Province of Alberta, Canada. Its assets are located approximately 4 to 80 km northwest of the city of Grande Prairie, Alberta. The company was formerly known as Advantage Oil & Gas Ltd. and changed its name to Advantage Energy Ltd. in May 2021. Advantage Energy Ltd. was founded in 2001 and is headquartered in Calgary, Canada.

About Amplify Energy

Amplify Energy Corp., together with its subsidiaries, engages in the acquisition, development, exploitation, and production of oil and natural gas properties in the United States. The company's properties consist of operated and non-operated working interests in producing and undeveloped leasehold acreage, as well as working interests in identified producing wells located in Oklahoma, the Rockies, federal waters offshore Southern California, East Texas/North Louisiana, and Eagle Ford. The company is based in Houston, Texas.