Obsidian Energy (OBE) Competitors

Vermilion Energy (TSE:VET) and Obsidian Energy (TSE:OBE) are both small-cap energy companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, risk, valuation, earnings, dividends, media sentiment, community ranking and profitability.

Which has more volatility and risk, VET or OBE?

Vermilion Energy has a beta of 2.6, indicating that its share price is 160% more volatile than the S&P 500. Comparatively, Obsidian Energy has a beta of 2.3, indicating that its share price is 130% more volatile than the S&P 500.

Does the MarketBeat Community favor VET or OBE?

Vermilion Energy received 415 more outperform votes than Obsidian Energy when rated by MarketBeat users. However, 58.57% of users gave Obsidian Energy an outperform vote while only 57.04% of users gave Vermilion Energy an outperform vote.

Company	Underperform	Outperform
Vermilion Energy	Outperform Votes 620 57.04%	Underperform Votes 467 42.96%
Obsidian Energy	Outperform Votes 205 58.57%	Underperform Votes 145 41.43%

Which has preferable valuation and earnings, VET or OBE?

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

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vermilion Energy	C$1.81B	1.10	-C$825.95M	-C$5.11	-2.49
Obsidian Energy	C$683.80M	0.80	C$108.10M	C$1.31	5.52

Is VET or OBE a better dividend stock?

Vermilion Energy pays an annual dividend of C$0.48 per share and has a dividend yield of 3.8%. Obsidian Energy pays an annual dividend of C$0.04 per share and has a dividend yield of 0.6%. Vermilion Energy pays out -9.4% of its earnings in the form of a dividend. Obsidian Energy pays out 3.1% 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 is clearly the better dividend stock, given its higher yield and lower payout ratio.

Does the media prefer VET or OBE?

In the previous week, Vermilion Energy had 4 more articles in the media than Obsidian Energy. MarketBeat recorded 7 mentions for Vermilion Energy and 3 mentions for Obsidian Energy. Vermilion Energy's average media sentiment score of 0.41 beat Obsidian Energy's score of 0.05 indicating that Vermilion Energy is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Vermilion Energy	2 Very Positive mention(s)	4 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Neutral
Obsidian Energy	0 Very Positive mention(s)	2 Positive mention(s)	0 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Neutral

Do analysts prefer VET or OBE?

Vermilion Energy presently has a consensus target price of C$19.27, suggesting a potential upside of 51.40%. Obsidian Energy has a consensus target price of C$12.50, suggesting a potential upside of 72.89%. Given Obsidian Energy's stronger consensus rating and higher probable upside, analysts clearly believe Obsidian Energy is more favorable than Vermilion Energy.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vermilion Energy	0 Sell rating(s)	3 Hold rating(s)	8 Buy rating(s)	0 Strong Buy rating(s)	2.73
Obsidian Energy	0 Sell rating(s)	0 Hold rating(s)	1 Buy rating(s)	1 Strong Buy rating(s)	3.50

Do insiders and institutionals hold more shares of VET or OBE?

44.8% of Vermilion Energy shares are owned by institutional investors. Comparatively, 27.4% of Obsidian Energy shares are owned by institutional investors. 0.2% of Vermilion Energy shares are owned by company insiders. Comparatively, 1.2% of Obsidian Energy shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Is VET or OBE more profitable?

Obsidian Energy has a net margin of 15.81% compared to Vermilion Energy's net margin of -45.56%. Obsidian Energy's return on equity of 6.56% beat Vermilion Energy's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Vermilion Energy	-45.56%	-24.83%	-5.53%
Obsidian Energy	15.81%	6.56%	4.88%

Summary

Obsidian Energy beats Vermilion Energy on 11 of the 21 factors compared between the two stocks.