Analyzing Africa Oil (AOIFF) and Its Peers

Africa Oil (OTCMKTS:AOIFF) is one of 401 public companies in the “Oil & Gas E&P” industry, but how does it contrast to its rivals? We will compare Africa Oil to related businesses based on the strength of its profitability, valuation, institutional ownership, risk, dividends, earnings and analyst recommendations.

Institutional & Insider Ownership

19.2% of shares of all “Oil & Gas E&P” companies are held by institutional investors. 1.0% of Africa Oil shares are held by insiders. Comparatively, 25.9% of shares of all “Oil & Gas E&P” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

Africa Oil pays an annual dividend of $0.05 per share and has a dividend yield of 3.8%. Africa Oil pays out 35.7% of its earnings in the form of a dividend. As a group, “Oil & Gas E&P” companies pay a dividend yield of 8.8% and pay out 82.6% of their earnings in the form of a dividend.

Valuation & Earnings

This table compares Africa Oil and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Africa Oil	N/A	$87.10 million	9.50
Africa Oil Competitors	$716.89 million	$110.09 million	6.03

Africa Oil’s rivals have higher revenue and earnings than Africa Oil. Africa Oil is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Risk and Volatility

Africa Oil has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.Comparatively, Africa Oil’s rivals have a beta of 1.30, meaning that their average stock price is 30% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Africa Oil and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Africa Oil	0	0	0	0	N/A
Africa Oil Competitors	699	4680	8690	362	2.60

As a group, “Oil & Gas E&P” companies have a potential upside of 68.64%. Given Africa Oil’s rivals higher probable upside, analysts plainly believe Africa Oil has less favorable growth aspects than its rivals.

Profitability

This table compares Africa Oil and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Africa Oil	N/A	-4.20%	-3.90%
Africa Oil Competitors	-12.89%	4.09%	3.10%

Summary

Africa Oil rivals beat Africa Oil on 9 of the 12 factors compared.

Africa Oil Company Profile

Africa Oil Corp., together with its subsidiaries, operates as an oil and gas exploration and production company in Kenya, Nigeria, and South Africa. The company holds interests in producing and development assets in deep-water Nigeria, and development assets in Kenya. It also has a portfolio of exploration and appraisal assets in Namibia, Nigeria, South Africa, and Kenya, as well as Guyana and Senegal Guinea Bissau Joint Development Zone. The company was formerly known as Canmex Minerals Corporation and changed its name to Africa Oil Corp. in August 2007. Africa Oil Corp. was incorporated in 1983 and is headquartered in Vancouver, Canada.