Critical Survey: Permex Petroleum (OTCMKTS:OILCF) versus Diamond Offshore Drilling (OTCMKTS:DOFSQ)

Permex Petroleum (OTCMKTS:OILCF) and Diamond Offshore Drilling (OTCMKTS:DOFSQ) are both small-cap oils/energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, analyst recommendations, profitability, valuation, dividends and institutional ownership.

Valuation & Earnings

This table compares Permex Petroleum and Diamond Offshore Drilling’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Permex Petroleum	$880,000.00	2.50	-$2.71 million	N/A	N/A
Diamond Offshore Drilling	$725.45 million	0.00	-$2.14 billion	N/A	N/A

Permex Petroleum has higher earnings, but lower revenue than Diamond Offshore Drilling.

Insider and Institutional Ownership

9.5% of Permex Petroleum shares are owned by institutional investors. 0.3% of Diamond Offshore Drilling shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings for Permex Petroleum and Diamond Offshore Drilling, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Permex Petroleum	0	0	0	0	N/A
Diamond Offshore Drilling	0	0	0	0	N/A

Profitability

This table compares Permex Petroleum and Diamond Offshore Drilling’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Permex Petroleum	N/A	N/A	N/A
Diamond Offshore Drilling	-294.90%	-183.15%	-78.90%

Summary

Permex Petroleum beats Diamond Offshore Drilling on 5 of the 7 factors compared between the two stocks.

About Permex Petroleum

Permex Petroleum Corporation, a junior oil and gas company, engages in the acquisition, development, and production of oil and gas properties in the United States. The company holds interests in the Pittcock North property, Pittcock South property, Windy Jones property, and Mary Bullard property located in Stonewall County. It also holds interests in the West Henshaw property located in Eddy County, New Mexico; Oxy Yates property located in Eddy County; and Breedlove B Clearfork property located in Martin Country, Texas. In addition, the company has royalty interests in the Permian Basin of West Texas and southeast New Mexico. Permex Petroleum Corporation was incorporated in 2017 and is headquartered in Dallas, Texas.

About Diamond Offshore Drilling

Diamond Offshore Drilling, Inc. provides contract drilling services to the energy industry worldwide. The company operates a fleet of 13 offshore drilling rigs, including four drillships and nine semisubmersible rigs. It serves independent oil and gas companies, and government-owned oil companies. The company was founded in 1953 and is headquartered in Houston, Texas. Diamond Offshore Drilling, Inc. is a subsidiary of Loews Corporation. On April 26, 2020, Diamond Offshore Drilling, Inc., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the United States Bankruptcy Court for the Southern District of Texas.