Critical Contrast: Pilgrim Petroleum (OTCMKTS:PGPM) versus Riley Exploration Permian (NYSE:REPX)

Riley Exploration Permian (NYSE:REPX) and Pilgrim Petroleum (OTCMKTS:PGPM) are both energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, analyst recommendations, valuation, dividends, risk and profitability.

Profitability

This table compares Riley Exploration Permian and Pilgrim Petroleum’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Riley Exploration Permian	28.48%	23.82%	11.31%
Pilgrim Petroleum	N/A	N/A	N/A

Insider and Institutional Ownership

58.9% of Riley Exploration Permian shares are held by institutional investors. 3.9% of Riley Exploration Permian shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Riley Exploration Permian and Pilgrim Petroleum, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Riley Exploration Permian	0	0	1	0	3.00
Pilgrim Petroleum	0	0	0	0	0.00

Riley Exploration Permian presently has a consensus target price of $47.00, indicating a potential upside of 88.30%. Given Riley Exploration Permian’s stronger consensus rating and higher possible upside, research analysts plainly believe Riley Exploration Permian is more favorable than Pilgrim Petroleum.

Earnings and Valuation

This table compares Riley Exploration Permian and Pilgrim Petroleum”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Riley Exploration Permian	$410.18 million	1.31	$111.59 million	$4.26	5.86
Pilgrim Petroleum	N/A	N/A	N/A	N/A	N/A

Riley Exploration Permian has higher revenue and earnings than Pilgrim Petroleum.

Volatility & Risk

Riley Exploration Permian has a beta of 1.56, suggesting that its stock price is 56% more volatile than the S&P 500. Comparatively, Pilgrim Petroleum has a beta of 0.47, suggesting that its stock price is 53% less volatile than the S&P 500.

Summary

Riley Exploration Permian beats Pilgrim Petroleum on 10 of the 10 factors compared between the two stocks.

About Riley Exploration Permian

Riley Exploration Permian, Inc., an independent oil and natural gas company, engages in the acquisition, exploration, development, and production of oil, natural gas, and natural gas liquids in Texas and New Mexico. The company's activities are primarily focused on the Northwest Shelf and Yeso trend of the Permian Basin. Its acreage is primarily located on contiguous blocks in Yoakum County, Texas; and Eddy County, New Mexico. Riley Exploration Permian, Inc. is headquartered in Oklahoma City, Oklahoma.

About Pilgrim Petroleum

Pilgrim Petroleum Corporation, an oil and gas exploration and development company, engages in the acquisition, development, and operation of crude oil and natural gas properties with proven reserves in the United States. The company holds interests in various projects located in Northwest Texas; the Electra Rework prospect located in Wichita and Willbarger Counties, Texas; and the City National Bank Discovery Well prospect located in Archer County, Texas. It also provides services to small and medium exploration and development companies. The company was formerly known as BNP Petroleum Corp. and changed its name to Pilgrim Petroleum Corporation in July 2005. Pilgrim Petroleum Corporation was founded in 1997 and is headquartered in Addison, Texas.