Financial Analysis: VOC Energy Trust (NYSE:VOC) vs. Veren (NYSE:VRN)

VOC Energy Trust (NYSE:VOC) and Veren (NYSE:VRN) are both oils/energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, earnings, valuation, risk, profitability, institutional ownership and analyst recommendations.

Volatility & Risk

VOC Energy Trust has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500. Comparatively, Veren has a beta of 2.1, suggesting that its stock price is 110% more volatile than the S&P 500.

Valuation and Earnings

This table compares VOC Energy Trust and Veren”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
VOC Energy Trust	$16.46 million	3.77	$15.22 million	$0.78	4.68
Veren	$2.59 billion	1.26	$422.48 million	$1.40	3.81

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

Profitability

This table compares VOC Energy Trust and Veren’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
VOC Energy Trust	90.84%	102.62%	102.62%
Veren	26.93%	12.23%	6.80%

Dividends

VOC Energy Trust pays an annual dividend of $0.34 per share and has a dividend yield of 9.3%. Veren pays an annual dividend of $0.33 per share and has a dividend yield of 6.2%. VOC Energy Trust pays out 43.6% of its earnings in the form of a dividend. Veren pays out 23.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for VOC Energy Trust and Veren, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
VOC Energy Trust	0	0	0	0	0.00
Veren	0	0	2	1	3.33

Veren has a consensus price target of $12.67, suggesting a potential upside of 137.43%. Given Veren’s stronger consensus rating and higher probable upside, analysts plainly believe Veren is more favorable than VOC Energy Trust.

Institutional & Insider Ownership

49.4% of Veren shares are held by institutional investors. 0.3% of Veren shares are held 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.

Summary

Veren beats VOC Energy Trust on 11 of the 17 factors compared between the two stocks.

About VOC Energy Trust

VOC Energy Trust acquires and holds a term net profits interest of the net proceeds from production and sale of the interests in oil and natural gas properties in the states of Kansas and Texas. The company has an 80% term net profits interest of the net proceeds on the underlying properties. As of December 31, 2021, its underlying properties had interests in 452.5 net producing wells and 51,147.2 net acres. VOC Energy Trust was incorporated in 2010 and is based in Houston, Texas.

About Veren

Veren Inc. explores, develops, and produces oil and gas properties in Canada and the United States. The company focuses on crude oil, tight oil, natural gas liquids, shale gas, and natural gas reserves. Its properties are located in the provinces of Saskatchewan, Alberta, British Columbia, and Manitoba; and the states of North Dakota. The company was formerly known as Crescent Point Energy Corp. and changed its name to Veren Inc. in May 2024. Veren Inc. was incorporated in 1994 and is headquartered in Calgary, Canada.