Northern Oil and Gas (NYSE:NOG) vs. ZaZa Energy (OTCMKTS:ZAZA) Critical Contrast

Northern Oil and Gas (NYSE:NOG) and ZaZa Energy (OTCMKTS:ZAZA) are both oils/energy companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, earnings, profitability, risk, analyst recommendations and dividends.

Profitability

This table compares Northern Oil and Gas and ZaZa Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Northern Oil and Gas	23.38%	24.41%	10.61%
ZaZa Energy	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Northern Oil and Gas and ZaZa Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Northern Oil and Gas	0	5	5	0	2.50
ZaZa Energy	0	0	0	0	0.00

Northern Oil and Gas presently has a consensus target price of $47.44, indicating a potential upside of 43.75%. Given Northern Oil and Gas’ stronger consensus rating and higher possible upside, research analysts clearly believe Northern Oil and Gas is more favorable than ZaZa Energy.

Valuation & Earnings

This table compares Northern Oil and Gas and ZaZa Energy”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Northern Oil and Gas	$2.23 billion	1.48	$922.97 million	$5.14	6.42
ZaZa Energy	N/A	N/A	N/A	N/A	N/A

Northern Oil and Gas has higher revenue and earnings than ZaZa Energy.

Institutional and Insider Ownership

98.8% of Northern Oil and Gas shares are owned by institutional investors. 2.8% of Northern Oil and Gas shares are owned by company insiders. Comparatively, 56.9% of ZaZa Energy shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Volatility and Risk

Northern Oil and Gas has a beta of 1.81, suggesting that its share price is 81% more volatile than the S&P 500. Comparatively, ZaZa Energy has a beta of 1.21, suggesting that its share price is 21% more volatile than the S&P 500.

Summary

Northern Oil and Gas beats ZaZa Energy on 9 of the 10 factors compared between the two stocks.

About Northern Oil and Gas

Northern Oil and Gas, Inc., an independent energy company, engages in the acquisition, exploration, exploitation, development, and production of crude oil and natural gas properties in the United States. It primarily holds interests in the Williston Basin, the Appalachian Basin, and the Permian Basin in the United States. The company is based in Minnetonka, Minnesota.

About ZaZa Energy

ZaZa Energy Corporation, an independent oil and gas company, focuses on the exploration and production of unconventional and conventional oil and gas assets in the United States. The company's properties include the Eagle Ford East Trend comprising approximately 41,000 net acres in Houston, Leon, Madison, Grimes, Walker, Trinity, and Montgomery counties in East Texas; and Eagle Ford Trend covering approximately 3,700 net acres located in DeWitt and Lavaca counties in South Texas. ZaZa Energy Corporation is headquartered in Houston, Texas.