Contrasting Alvopetro Energy (OTCMKTS:ALVOF) and EQT (NYSE:EQT)

Alvopetro Energy (OTCMKTS:ALVOF) and EQT (NYSE:EQT) are both oils/energy companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Insider and Institutional Ownership

90.8% of EQT shares are held by institutional investors. 0.6% of EQT shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations for Alvopetro Energy and EQT, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alvopetro Energy	0	0	0	0	N/A
EQT	0	7	9	0	2.56

EQT has a consensus price target of $44.35, suggesting a potential upside of 37.10%. Given EQT’s higher possible upside, analysts plainly believe EQT is more favorable than Alvopetro Energy.

Risk and Volatility

Alvopetro Energy has a beta of 0.19, meaning that its share price is 81% less volatile than the S&P 500. Comparatively, EQT has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500.

Earnings and Valuation

This table compares Alvopetro Energy and EQT’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alvopetro Energy	$59.69 million	2.29	$28.52 million	$0.55	6.80
EQT	$4.58 billion	3.12	$1.74 billion	$1.38	23.44

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

Profitability

This table compares Alvopetro Energy and EQT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Alvopetro Energy	26.72%	25.22%	20.41%
EQT	12.45%	4.52%	2.68%

Dividends

Alvopetro Energy pays an annual dividend of $0.36 per share and has a dividend yield of 9.6%. EQT pays an annual dividend of $0.63 per share and has a dividend yield of 1.9%. Alvopetro Energy pays out 65.5% of its earnings in the form of a dividend. EQT pays out 45.7% 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

EQT beats Alvopetro Energy on 11 of the 15 factors compared between the two stocks.

About Alvopetro Energy

Alvopetro Energy Ltd. engages in the acquisition, exploration, development, and production of hydrocarbons. It holds interests in the Caburé and Murucututu natural gas assets, Block 182 and 183 exploration assets, and Bom Lugar and Mãe-da-lua oil fields, which covers an area of approximately 22,166 acres in the Recôncavo basin onshore Brazil. The company was incorporated in 2013 and is headquartered in Calgary, Canada.

About EQT

EQT Corporation operates as a natural gas production company in the United States. The company sells natural gas and natural gas liquids to marketers, utilities, and industrial customers through pipelines located in the Appalachian Basin. It also offers marketing services and contractual pipeline capacity management services. The company was formerly known as Equitable Resources Inc. and changed its name to EQT Corporation in February 2009. EQT Corporation was founded in 1878 and is headquartered in Pittsburgh, Pennsylvania.