Analyzing Riley Exploration Permian (NYSE:REPX) & Obsidian Energy (OTCMKTS:OBELF)

Riley Exploration Permian (NYSE:REPX) and Obsidian Energy (OTCMKTS:OBELF) are both small-cap energy companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, valuation, risk and profitability.

Insider & Institutional Ownership

58.9% of Riley Exploration Permian shares are held by institutional investors. Comparatively, 0.0% of Obsidian Energy shares are held by institutional investors. 4.7% of Riley Exploration Permian shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Riley Exploration Permian and Obsidian Energy”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Riley Exploration Permian	$392.89 million	1.53	$111.59 million	$4.53	6.01
Obsidian Energy	$220.00 million	2.10	-$576.07 million	$4.17	1.37

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

Volatility and Risk

Riley Exploration Permian has a beta of 1.49, suggesting that its share price is 49% more volatile than the S&P 500. Comparatively, Obsidian Energy has a beta of 2.47, suggesting that its share price is 147% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Riley Exploration Permian and Obsidian Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Riley Exploration Permian	0	0	1	0	3.00
Obsidian Energy	0	0	0	0	0.00

Riley Exploration Permian currently has a consensus price target of $47.00, indicating a potential upside of 72.54%. Given Riley Exploration Permian’s stronger consensus rating and higher possible upside, analysts clearly believe Riley Exploration Permian is more favorable than Obsidian Energy.

Profitability

This table compares Riley Exploration Permian and Obsidian Energy’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%
Obsidian Energy	99.13%	78.07%	35.32%

Summary

Riley Exploration Permian beats Obsidian Energy on 9 of the 14 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 Obsidian Energy

Obsidian Energy Ltd. is an exploration and production company. The firm engages in exploring, developing, and holds interests in oil and natural gas properties and related production infrastructure in the Western Canada Sedimentary Basin directly and through investments in securities of subsidiaries holding such interests. Its property portfolio includes Cardium, Viking, and Peace River. The company was founded on December 27, 1979 and is headquartered in Calgary, Canada.