Penn Virginia (NASDAQ:PVAC) and FEC Resources (OTCMKTS:FECOF) are both small-cap oils/energy companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, earnings, analyst recommendations, risk and profitability.
Profitability
This table compares Penn Virginia and FEC Resources’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Penn Virginia | 56.77% | 29.06% | 11.87% |
| FEC Resources | N/A | -13.14% | -12.80% |
Volatility and Risk
Penn Virginia has a beta of 1.46, meaning that its share price is 46% more volatile than the S&P 500. Comparatively, FEC Resources has a beta of 0.37, meaning that its share price is 63% less volatile than the S&P 500.
Insider and Institutional Ownership
0.0% of FEC Resources shares are owned by institutional investors. 0.4% of Penn Virginia shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Valuation & Earnings
This table compares Penn Virginia and FEC Resources’ revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Penn Virginia | $440.83 million | 0.97 | $224.79 million | $9.19 | 3.07 |
| FEC Resources | N/A | N/A | -$230,000.00 | N/A | N/A |
Penn Virginia has higher revenue and earnings than FEC Resources.
Analyst Ratings
This is a summary of recent recommendations for Penn Virginia and FEC Resources, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Penn Virginia | 0 | 0 | 3 | 0 | 3.00 |
| FEC Resources | 0 | 0 | 0 | 0 | N/A |
Penn Virginia presently has a consensus target price of $60.50, suggesting a potential upside of 114.16%. Given Penn Virginia’s higher probable upside, equities analysts plainly believe Penn Virginia is more favorable than FEC Resources.
Summary
Penn Virginia beats FEC Resources on 9 of the 10 factors compared between the two stocks.
About Penn Virginia
Penn Virginia Corporation, an independent oil and gas company, engages in the onshore exploration, development, and production of crude oil, natural gas liquids, and natural gas in the United States. It primarily operates wells in the Eagle Ford Shale field in South Texas. As of December 31, 2018, it had total proved reserves of approximately 123 million barrels of oil equivalent; and 460 gross productive wells, as well as owned approximately 98,200 gross acres of leasehold and royalty interests. Penn Virginia Corporation was founded in 1882 and is headquartered in Houston, Texas.
About FEC Resources
FEC Resources Inc. engages in the exploration and development of oil and gas properties in the Philippines. The company, through its interest in, Forum Energy Limited, owns a 70% interest in the Service Contract 72, an offshore license located to the north west of the Philippine Island of Palawan. It also owns 8.46%, 12.40%, and 19.46% interests in the Service Contract 14 Block A Nido, Block B Matinloc, and Block B1 North Matinloc located in the offshore northwest Palawan; and a 66.67% interest in the Service Contract 40 North Cebu covering an area of 340,000 hectares in the northern part of Cebu Island and adjacent offshore areas located in the Visayan Basin in the central part of the Philippine Archipelago. The company is headquartered in North Sydney, Australia. FEC Resources Inc. is a subsidiary of PXP Energy Corporation.
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