Vitesse Energy (NYSE:VTS) & SandRidge Energy (NYSE:SD) Critical Analysis
by Danessa Lincoln · The Markets DailyVitesse Energy (NYSE:VTS – Get Free Report) and SandRidge Energy (NYSE:SD – Get Free Report) are both small-cap oils/energy companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, profitability, earnings, analyst recommendations, institutional ownership and valuation.
Analyst Recommendations
This is a summary of recent ratings and price targets for Vitesse Energy and SandRidge Energy, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Vitesse Energy | 0 | 0 | 1 | 0 | 3.00 |
| SandRidge Energy | 0 | 0 | 0 | 0 | N/A |
Vitesse Energy presently has a consensus target price of $26.00, suggesting a potential upside of 4.42%. Given Vitesse Energy’s higher probable upside, research analysts plainly believe Vitesse Energy is more favorable than SandRidge Energy.
Volatility and Risk
Vitesse Energy has a beta of 0.23, indicating that its stock price is 77% less volatile than the S&P 500. Comparatively, SandRidge Energy has a beta of 2.08, indicating that its stock price is 108% more volatile than the S&P 500.
Earnings and Valuation
This table compares Vitesse Energy and SandRidge Energy”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Vitesse Energy | $233.90 million | 3.14 | -$19.74 million | $0.88 | 28.30 |
| SandRidge Energy | $128.34 million | 3.31 | $60.86 million | $1.30 | 8.81 |
SandRidge Energy has lower revenue, but higher earnings than Vitesse Energy. SandRidge Energy is trading at a lower price-to-earnings ratio than Vitesse Energy, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
51.6% of Vitesse Energy shares are held by institutional investors. Comparatively, 61.8% of SandRidge Energy shares are held by institutional investors. 15.8% of Vitesse Energy shares are held by company insiders. Comparatively, 1.2% of SandRidge Energy shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Profitability
This table compares Vitesse Energy and SandRidge Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Vitesse Energy | 10.78% | 7.94% | 5.57% |
| SandRidge Energy | 31.47% | 9.88% | 7.97% |
Dividends
Vitesse Energy pays an annual dividend of $2.10 per share and has a dividend yield of 8.4%. SandRidge Energy pays an annual dividend of $0.44 per share and has a dividend yield of 3.8%. Vitesse Energy pays out 238.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. SandRidge Energy pays out 33.8% of its earnings in the form of a dividend.
Summary
SandRidge Energy beats Vitesse Energy on 9 of the 15 factors compared between the two stocks.
About Vitesse Energy
Vitesse Energy, Inc., together with its subsidiaries, engages in the acquisition, development, and production of non-operated oil and natural gas properties in the United States. It owns and acquires non-operated working interest and royalty interest ownership in the Williston Basin properties located in North Dakota and Montana. The company also owns non-operated interests in the Central Rockies properties located in Colorado and Wyoming. Vitesse Energy, Inc. was founded in 2014 and is based in Centennial, Colorado.
About SandRidge Energy
SandRidge Energy, Inc. engages in the acquisition, development, and production of oil, natural gas, and natural gas liquids in the United States Mid-Continent. The company was incorporated in 2006 and is headquartered in Oklahoma City, Oklahoma.