Comparing Africa Energy (OTCMKTS:HPMCF) and Callon Petroleum (NYSE:CPE)

Callon Petroleum (NYSE:CPE) and Africa Energy (OTCMKTS:HPMCF) are both energy companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, earnings, risk, profitability, analyst recommendations, institutional ownership and valuation.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Callon Petroleum and Africa Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Callon Petroleum	0	3	3	0	2.50
Africa Energy	0	0	0	0	N/A

Callon Petroleum presently has a consensus price target of $40.33, suggesting a potential upside of 12.79%. Given Callon Petroleum’s higher possible upside, equities research analysts plainly believe Callon Petroleum is more favorable than Africa Energy.

Earnings and Valuation

This table compares Callon Petroleum and Africa Energy’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Callon Petroleum	$2.34 billion	1.02	$401.20 million	$6.09	5.87
Africa Energy	N/A	N/A	N/A	($0.02)	-3.95

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

Institutional & Insider Ownership

91.1% of Callon Petroleum shares are owned by institutional investors. Comparatively, 44.6% of Africa Energy shares are owned by institutional investors. 1.8% of Callon Petroleum shares are owned 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 Callon Petroleum and Africa Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Callon Petroleum	17.12%	12.65%	7.14%
Africa Energy	N/A	N/A	N/A

Summary

Callon Petroleum beats Africa Energy on 10 of the 10 factors compared between the two stocks.

About Callon Petroleum

Callon Petroleum Company, an independent oil and natural gas company, focuses on the acquisition, exploration, and development of oil and natural gas properties in West Texas. Callon Petroleum Company was founded in 1950 and is headquartered in Houston, Texas.

About Africa Energy

Africa Energy Corp. operates as an oil and gas exploration and production company in South Africa and Namibia. The company focuses on potential gas condensate development on Block 11B/12B offshore in South Africa. It holds interest in the Block 2B offshore the Republic of South Africa. The company was formerly known as Horn Petroleum Corporation and changed its name to Africa Energy Corp. in March 2015. Africa Energy Corp. is headquartered in Vancouver, Canada.