Baytex Energy (NYSE:BTE) versus Vermilion Energy (NYSE:VET) Head-To-Head Review
by Mitch Edgeman · The Markets DailyVermilion Energy (NYSE:VET – Get Free Report) and Baytex Energy (NYSE:BTE – Get Free Report) are both mid-cap energy companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.
Analyst Recommendations
This is a summary of current recommendations and price targets for Vermilion Energy and Baytex Energy, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Vermilion Energy | 1 | 6 | 2 | 0 | 2.11 |
| Baytex Energy | 0 | 6 | 2 | 3 | 2.73 |
Vermilion Energy currently has a consensus price target of $15.00, suggesting a potential upside of 10.91%. Given Vermilion Energy’s higher possible upside, equities analysts clearly believe Vermilion Energy is more favorable than Baytex Energy.
Risk & Volatility
Vermilion Energy has a beta of 0.58, indicating that its stock price is 42% less volatile than the S&P 500. Comparatively, Baytex Energy has a beta of 0.4, indicating that its stock price is 60% less volatile than the S&P 500.
Dividends
Vermilion Energy pays an annual dividend of $0.39 per share and has a dividend yield of 2.9%. Baytex Energy pays an annual dividend of $0.06 per share and has a dividend yield of 1.1%. Vermilion Energy pays out -18.5% of its earnings in the form of a dividend. Baytex Energy pays out -9.0% 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 has increased its dividend for 3 consecutive years. Vermilion Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Institutional and Insider Ownership
31.9% of Vermilion Energy shares are owned by institutional investors. Comparatively, 46.1% of Baytex Energy shares are owned by institutional investors. 2.6% of Vermilion Energy shares are owned by insiders. Comparatively, 0.8% of Baytex Energy shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Profitability
This table compares Vermilion Energy and Baytex Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Vermilion Energy | -22.48% | 5.26% | 2.15% |
| Baytex Energy | -26.43% | -7.77% | -4.86% |
Valuation & Earnings
This table compares Vermilion Energy and Baytex Energy”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Vermilion Energy | $1.30 billion | 1.58 | -$467.78 million | ($2.11) | -6.41 |
| Baytex Energy | $2.56 billion | 1.45 | -$432.12 million | ($0.67) | -8.02 |
Baytex Energy has higher revenue and earnings than Vermilion Energy. Baytex Energy is trading at a lower price-to-earnings ratio than Vermilion Energy, indicating that it is currently the more affordable of the two stocks.
Summary
Vermilion Energy beats Baytex Energy on 11 of the 17 factors compared between the two stocks.
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.
About Baytex Energy
Baytex Energy Corp. is an oil & gas exploration and production company. The firm engages in the acquisition, development and production of crude oil and natural gas in the Western Canadian Sedimentary Basin and in the Eagle Ford in the United States. The company was founded on June 3, 1993 and is headquartered in Calgary, Canada.