Reviewing Groove Botanicals (OTCMKTS:GRVE) and Matador Resources (NYSE:MTDR)

Groove Botanicals (OTCMKTS:GRVE) and Matador Resources (NYSE:MTDR) are both oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, valuation, analyst recommendations, earnings, risk and institutional ownership.

Insider and Institutional Ownership

92.0% of Matador Resources shares are held by institutional investors. 55.1% of Groove Botanicals shares are held by insiders. Comparatively, 6.1% of Matador Resources shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Groove Botanicals and Matador Resources”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Groove Botanicals	N/A	N/A	-$200,000.00	N/A	N/A
Matador Resources	$2.81 billion	2.54	$846.07 million	$7.55	7.58

Matador Resources has higher revenue and earnings than Groove Botanicals.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Groove Botanicals and Matador Resources, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Groove Botanicals	0	0	0	0	0.00
Matador Resources	0	1	13	0	2.93

Matador Resources has a consensus target price of $75.14, suggesting a potential upside of 31.35%. Given Matador Resources’ stronger consensus rating and higher probable upside, analysts plainly believe Matador Resources is more favorable than Groove Botanicals.

Profitability

This table compares Groove Botanicals and Matador Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Groove Botanicals	N/A	N/A	-5,800.49%
Matador Resources	27.45%	20.01%	10.67%

Volatility & Risk

Groove Botanicals has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500. Comparatively, Matador Resources has a beta of 3.22, meaning that its share price is 222% more volatile than the S&P 500.

Summary

Matador Resources beats Groove Botanicals on 10 of the 11 factors compared between the two stocks.

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.

About Matador Resources

Matador Resources Company, an independent energy company, engages in the exploration, development, production, and acquisition of oil and natural gas resources in the United States. It operates through two segments, Exploration and Production; and Midstream. The company primarily holds interests in the Wolfcamp and Bone Spring plays in the Delaware Basin in Southeast New Mexico and West Texas. It also operates the Eagle Ford shale play in South Texas; and the Haynesville shale and Cotton Valley plays in Northwest Louisiana. In addition, the company conducts midstream operations in support of its exploration, development, and production operations. Further, it provides natural gas processing and oil transportation services; and oil, natural gas, and produced water gathering services, as well as produced water disposal services to third parties. The company sells natural gas to unaffiliated independent marketing companies and unaffiliated midstream companies. The company was formerly known as Matador Holdco, Inc. and changed its name to Matador Resources Company in August 2011. Matador Resources Company was founded in 2003 and is headquartered in Dallas, Texas.