Blue Ridge Mountain Resources (OTCMKTS: MHRCQ) and Halcon Resources (NYSE:HK) are both small-cap basic materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their risk, institutional ownership, dividends, profitability, analyst recommendations, earnings and valuation.
This table compares Blue Ridge Mountain Resources and Halcon Resources’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Blue Ridge Mountain Resources||-2,141.83%||N/A||-174.34%|
This is a breakdown of current ratings for Blue Ridge Mountain Resources and Halcon Resources, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Blue Ridge Mountain Resources||0||0||0||0||N/A|
Halcon Resources has a consensus target price of $9.57, indicating a potential upside of 25.28%. Given Halcon Resources’ higher possible upside, analysts plainly believe Halcon Resources is more favorable than Blue Ridge Mountain Resources.
Insider and Institutional Ownership
94.3% of Halcon Resources shares are owned by institutional investors. 53.9% of Halcon Resources shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares Blue Ridge Mountain Resources and Halcon Resources’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Blue Ridge Mountain Resources||N/A||N/A||N/A||($1.02)||0.00|
|Halcon Resources||$420.20 million||2.72||-$467.23 million||$4.01||1.91|
Blue Ridge Mountain Resources has higher earnings, but lower revenue than Halcon Resources. Blue Ridge Mountain Resources is trading at a lower price-to-earnings ratio than Halcon Resources, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Blue Ridge Mountain Resources has a beta of 2.75, meaning that its share price is 175% more volatile than the S&P 500. Comparatively, Halcon Resources has a beta of 4.03, meaning that its share price is 303% more volatile than the S&P 500.
Halcon Resources beats Blue Ridge Mountain Resources on 11 of the 11 factors compared between the two stocks.
About Blue Ridge Mountain Resources
Blue Ridge Mountain Resources, Inc., formerly Magnum Hunter Resources Corporation, is an independent exploration and production company engaged in the acquisition, development and production of natural gas, natural gas liquids and crude oil, primarily in the states of West Virginia and Ohio. The Company operates through three segments: Upstream, Midstream and Oil Field Services. The Upstream segment is organized and operated to explore for and produce crude oil and natural gas within the geographic boundaries of the United States and Canada. The Midstream segment consists primarily of Eureka Hunter Holdings, LLC (Eureka Midstream Holdings), which markets natural gas and operates a network of pipelines and compression stations that gather natural gas and natural gas liquids (NGLs) in the United States for transportation to market. The Oilfield Services segment provides drilling services to oil and natural gas exploration and production companies.
About Halcon Resources
Halcon Resources Corporation is an independent energy company focused on the acquisition, production, exploration and development of onshore liquids-rich oil and natural gas assets in the United States. The Company’s estimated total proved oil and natural gas reserves are approximately 146.8 million barrels of oil equivalent (MMBoe), consisting of over 120.7 million barrels of oil (MMBbls), approximately 13.0 MMBbls of natural gas liquids and over 78.4 billion cubic feet (Bcf) of natural gas. The Company’s oil and natural gas assets consist of undeveloped acreage positions in unconventional liquids-rich basins/fields. The Company has reserves in its core resource plays of approximately 143.6 MMBoe, of which over 92% are oil and natural gas liquids, and approximately 55% are proved developed. The Company has working interests in approximately 123,000 net acres prospective in the Bakken/Three Forks formations in North Dakota.
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