Critical Survey: Expand Energy (NASDAQ:EXE) and Tourmaline Oil (OTCMKTS:TRMLF)

Tourmaline Oil (OTCMKTS:TRMLF) and Expand Energy (NASDAQ:EXE) are both large-cap energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, valuation, analyst recommendations, dividends, earnings, risk and profitability.

Volatility and Risk

Tourmaline Oil has a beta of -0.21, indicating that its share price is 121% less volatile than the S&P 500. Comparatively, Expand Energy has a beta of 0.41, indicating that its share price is 59% less volatile than the S&P 500.

Insider & Institutional Ownership

1.8% of Tourmaline Oil shares are owned by institutional investors. Comparatively, 97.9% of Expand Energy shares are owned by institutional investors. 0.2% of Expand Energy shares are owned by company 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 Tourmaline Oil and Expand Energy”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tourmaline Oil	$4.72 billion	3.86	$187.99 million	$0.72	65.13
Expand Energy	$12.12 billion	1.77	$1.82 billion	$11.58	8.02

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

Dividends

Tourmaline Oil pays an annual dividend of $1.44 per share and has a dividend yield of 3.1%. Expand Energy pays an annual dividend of $2.30 per share and has a dividend yield of 2.5%. Tourmaline Oil pays out 200.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Expand Energy pays out 19.9% of its earnings in the form of a dividend.

Profitability

This table compares Tourmaline Oil and Expand Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tourmaline Oil	6.05%	9.05%	6.25%
Expand Energy	20.46%	10.33%	6.89%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Tourmaline Oil and Expand Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tourmaline Oil	1	5	3	1	2.40
Expand Energy	0	5	15	3	2.91

Tourmaline Oil currently has a consensus target price of $65.00, suggesting a potential upside of 38.62%. Expand Energy has a consensus target price of $122.89, suggesting a potential upside of 32.26%. Given Tourmaline Oil’s higher probable upside, equities research analysts plainly believe Tourmaline Oil is more favorable than Expand Energy.

Summary

Expand Energy beats Tourmaline Oil on 13 of the 17 factors compared between the two stocks.

About Tourmaline Oil

Tourmaline Oil Corp. explores for and develops oil and natural gas properties in the Western Canadian Sedimentary Basin. The company holds interests in properties located in the Alberta Deep Basin, Northeast British Columbia Montney, and the Peace River High Triassic oil complex. Tourmaline Oil Corp. was incorporated in 2008 and is headquartered in Calgary, Canada.

About Expand Energy

Expand Energy Corporation is an independent natural gas producer principally in the United States. Expand Energy Corporation, formerly known as Chesapeake Energy Corporation, is based in OKLAHOMA CITY.