Head to Head Review: Northern Oil and Gas (NYSE:NOG) vs. Galp Energia, SGPS (OTCMKTS:GLPEY)

Galp Energia, SGPS (OTCMKTS:GLPEY) and Northern Oil and Gas (NYSE:NOG) are both oils/energy companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, risk and profitability.

Institutional and Insider Ownership

98.8% of Northern Oil and Gas shares are owned by institutional investors. 2.8% of Northern Oil and Gas shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Galp Energia, SGPS and Northern Oil and Gas”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Galp Energia, SGPS	$22.04 billion	0.51	$1.34 billion	$0.94	8.64
Northern Oil and Gas	$2.17 billion	1.64	$922.97 million	$8.33	4.27

Galp Energia, SGPS has higher revenue and earnings than Northern Oil and Gas. Northern Oil and Gas is trading at a lower price-to-earnings ratio than Galp Energia, SGPS, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Galp Energia, SGPS has a beta of 0.45, meaning that its share price is 55% less volatile than the S&P 500. Comparatively, Northern Oil and Gas has a beta of 1.82, meaning that its share price is 82% more volatile than the S&P 500.

Profitability

This table compares Galp Energia, SGPS and Northern Oil and Gas’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Galp Energia, SGPS	6.17%	24.38%	8.14%
Northern Oil and Gas	33.44%	27.52%	12.28%

Analyst Ratings

This is a summary of current ratings and price targets for Galp Energia, SGPS and Northern Oil and Gas, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Galp Energia, SGPS	0	0	0	2	4.00
Northern Oil and Gas	0	4	5	0	2.56

Northern Oil and Gas has a consensus target price of $47.56, suggesting a potential upside of 33.56%. Given Northern Oil and Gas’ higher probable upside, analysts clearly believe Northern Oil and Gas is more favorable than Galp Energia, SGPS.

Dividends

Galp Energia, SGPS pays an annual dividend of $0.14 per share and has a dividend yield of 1.7%. Northern Oil and Gas pays an annual dividend of $1.68 per share and has a dividend yield of 4.7%. Galp Energia, SGPS pays out 14.9% of its earnings in the form of a dividend. Northern Oil and Gas pays out 20.2% 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.

Summary

Northern Oil and Gas beats Galp Energia, SGPS on 11 of the 17 factors compared between the two stocks.

About Galp Energia, SGPS

Galp Energia, SGPS, S.A. operates as an integrated energy operator in Portugal and internationally. The company operates through four segments: Upstream, Industrial & Midstream, Commercial, and Renewables and New Business. The Upstream segment engages in the exploration, development, and production of hydrocarbons primarily in Brazil, Mozambique, Namibia, and Angola. The Industrial & Midstream segment owns refineries in Portugal, as well as is involved in activities related to energy management of oil products, gas, and electricity. This segment provides storage and transportation infrastructure for oil and gas products, as well as engages in the sale of electricity to the grid in Portugal and Spain. The Commercial segment is involved in the areas of retail to final business-to-business and business to consumer customers of oil, gas, and electricity. The Renewables and New Business segment is involved in the development of solar and wind power generation projects in Portugal and Spain. In addition, it produces lithium-ion batteries, hydrogen, and biofuels; and operates service stations. Further, the company engages in the reinsurance business. The company was formerly known as Galp Petróleos e Gás de Portugal, SGPS, S.A. and changed its name to Galp Energia, SGPS, S.A. in September 2000. Galp Energia, SGPS, S.A. was incorporated in 1999 and is headquartered in Lisbon, Portugal.

About Northern Oil and Gas

Northern Oil and Gas, Inc., an independent energy company, engages in the acquisition, exploration, exploitation, development, and production of crude oil and natural gas properties in the United States. It primarily holds interests in the Williston Basin, the Appalachian Basin, and the Permian Basin in the United States. The company is based in Minnetonka, Minnesota.