Halcon Resources Corporation (NYSE: HK) and Geopark (NYSE:GPRK) are both small-cap oils/energy companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, earnings, analyst recommendations, profitability and valuation.
This is a summary of recent recommendations and price targets for Halcon Resources Corporation and Geopark, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Halcon Resources Corporation||0||3||6||0||2.67|
Halcon Resources Corporation presently has a consensus price target of $9.43, indicating a potential upside of 50.62%. Geopark has a consensus price target of $11.50, indicating a potential upside of 36.58%. Given Halcon Resources Corporation’s higher possible upside, equities analysts clearly believe Halcon Resources Corporation is more favorable than Geopark.
This table compares Halcon Resources Corporation and Geopark’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Halcon Resources Corporation||-65.92%||16.78%||4.27%|
Insider & Institutional Ownership
91.6% of Halcon Resources Corporation shares are owned by institutional investors. Comparatively, 14.2% of Geopark shares are owned by institutional investors. 53.9% of Halcon Resources Corporation shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares Halcon Resources Corporation and Geopark’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Halcon Resources Corporation||$488.44 million||1.84||$223.78 million||($3.77)||-1.66|
|Geopark||$252.12 million||2.00||$126.42 million||($0.65)||-12.95|
Halcon Resources Corporation has higher revenue and earnings than Geopark. Geopark is trading at a lower price-to-earnings ratio than Halcon Resources Corporation, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Halcon Resources Corporation has a beta of 3.99, indicating that its share price is 299% more volatile than the S&P 500. Comparatively, Geopark has a beta of 0.28, indicating that its share price is 72% less volatile than the S&P 500.
Halcon Resources Corporation beats Geopark on 8 of the 12 factors compared between the two stocks.
Halcon Resources Corporation Company Profile
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.
Geopark Company Profile
GeoPark Limited engages in the exploration, development, and production of oil and gas reserves in Chile, Colombia, Brazil, Peru, and Argentina. As of December 31, 2016, the company had working and/or economic interests in 26 hydrocarbons blocks, as well as shallow-offshore concession in Brazil that includes the Manati Field. It had net proved reserves of 73.6 million barrels of oil equivalent. The company was formerly known as GeoPark Holdings Limited and changed its name to GeoPark Limited in July 2013. GeoPark Limited was founded in 2002 and is based in Santiago, Chile.
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