Comparing Vermilion Energy (NYSE:VET) & Nostrum Oil & Gas (OTCMKTS:NSTRY)

Nostrum Oil & Gas (OTCMKTS:NSTRY) and Vermilion Energy (NYSE:VET) are both small-cap oils/energy companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, institutional ownership, risk, profitability, analyst recommendations and dividends.

Risk & Volatility

Nostrum Oil & Gas has a beta of -3118.28, indicating that its stock price is 311,928% less volatile than the S&P 500. Comparatively, Vermilion Energy has a beta of 1.99, indicating that its stock price is 99% more volatile than the S&P 500.

Institutional & Insider Ownership

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

Valuation & Earnings

This table compares Nostrum Oil & Gas and Vermilion Energy”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nostrum Oil & Gas	$195.29 million	1.13	-$26.12 million	($0.37)	-12.62
Vermilion Energy	$1.49 billion	1.02	-$176.01 million	($3.73)	-2.60

Nostrum Oil & Gas has higher earnings, but lower revenue than Vermilion Energy. Nostrum Oil & Gas 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 ratings and target prices for Nostrum Oil & Gas and Vermilion Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nostrum Oil & Gas	0	0	0	0	N/A
Vermilion Energy	0	1	2	0	2.67

Profitability

This table compares Nostrum Oil & Gas and Vermilion Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nostrum Oil & Gas	-8.42%	N/A	-13.93%
Vermilion Energy	-41.33%	5.99%	2.94%

Summary

Vermilion Energy beats Nostrum Oil & Gas on 8 of the 12 factors compared between the two stocks.

About Nostrum Oil & Gas

Nostrum Oil & Gas PLC, an independent oil and gas company, engages in the exploration, development, and production of oil and gas in the pre-Caspian Basin. The company discovers and develops oil and gas reserves, as well as produces and sells crude oil, stabilized condensate, liquefied petroleum gas, and dry gas. Its principal producing asset is 100% owned Chinarevskoye field located in North-western Kazakhstan. As of December 31, 2021, the company had proved and probable reserves of 34 million barrels of oil equivalent (mmboe) and 28 mmboe of contingent resources. Nostrum Oil & Gas PLC was founded in 1997 and is based in London, the United Kingdom.

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.