Analyzing Vital Energy (NYSE:VTLE) & Groove Botanicals (OTCMKTS:GRVE)

Vital Energy (NYSE:VTLE) and Groove Botanicals (OTCMKTS:GRVE) are both small-cap oils/energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, valuation and risk.

Profitability

This table compares Vital Energy and Groove Botanicals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Vital Energy	13.97%	11.58%	5.76%
Groove Botanicals	N/A	N/A	-9,886.49%

Risk and Volatility

Vital Energy has a beta of 3.16, meaning that its share price is 216% more volatile than the S&P 500. Comparatively, Groove Botanicals has a beta of 1.57, meaning that its share price is 57% more volatile than the S&P 500.

Earnings & Valuation

This table compares Vital Energy and Groove Botanicals”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Vital Energy	$1.84 billion	0.55	$695.08 million	$24.13	1.14
Groove Botanicals	N/A	N/A	-$200,000.00	N/A	N/A

Vital Energy has higher revenue and earnings than Groove Botanicals.

Institutional & Insider Ownership

86.5% of Vital Energy shares are held by institutional investors. 1.2% of Vital Energy shares are held by insiders. Comparatively, 55.1% of Groove Botanicals shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Vital Energy and Groove Botanicals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Vital Energy	3	5	4	0	2.08
Groove Botanicals	0	0	0	0	N/A

Vital Energy presently has a consensus target price of $47.83, indicating a potential upside of 73.56%. Given Vital Energy’s higher probable upside, equities analysts plainly believe Vital Energy is more favorable than Groove Botanicals.

Summary

Vital Energy beats Groove Botanicals on 9 of the 10 factors compared between the two stocks.

About Vital Energy

Vital Energy, Inc., an independent energy company, engages in the acquisition, exploration, and development of oil and natural gas properties in the Permian Basin of West Texas, the United States. The company was formerly known as Laredo Petroleum, Inc. and changed its name to Vital Energy, Inc. in January 2023. Vital Energy, Inc. was founded in 2006 and is headquartered in Tulsa, Oklahoma.

About Groove Botanicals

Groove Botanicals, Inc. operates as an independent oil and gas producer. It also focuses on assembling a portfolio of EV battery technologies. The company was formerly known as Avalon Oil & Gas, Inc. and changed its name to Groove Botanicals, Inc. in May 2018. Groove Botanicals, Inc. was incorporated in 1991 and is headquartered in Minneapolis, Minnesota.