Analyzing Murphy Oil (NYSE:MUR) and HyperDynamics (OTCMKTS:HDYNQ)

Murphy Oil (NYSE:MUR) and HyperDynamics (OTCMKTS:HDYNQ) are both energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, risk, dividends, analyst recommendations, earnings and valuation.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Murphy Oil and HyperDynamics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Murphy Oil	3	11	1	0	1.87
HyperDynamics	0	0	0	0	0.00

Murphy Oil currently has a consensus target price of $28.25, indicating a potential upside of 6.16%. Given Murphy Oil’s stronger consensus rating and higher possible upside, equities analysts plainly believe Murphy Oil is more favorable than HyperDynamics.

Profitability

This table compares Murphy Oil and HyperDynamics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Murphy Oil	10.20%	5.25%	2.88%
HyperDynamics	N/A	N/A	N/A

Valuation & Earnings

This table compares Murphy Oil and HyperDynamics”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Murphy Oil	$2.78 billion	1.37	$407.17 million	$1.93	13.79
HyperDynamics	N/A	N/A	N/A	N/A	N/A

Murphy Oil has higher revenue and earnings than HyperDynamics.

Risk and Volatility

Murphy Oil has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500. Comparatively, HyperDynamics has a beta of 2.51, meaning that its share price is 151% more volatile than the S&P 500.

Insider and Institutional Ownership

78.3% of Murphy Oil shares are held by institutional investors. 6.5% of Murphy Oil shares are held by insiders. Comparatively, 5.9% of HyperDynamics shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Murphy Oil beats HyperDynamics on 9 of the 10 factors compared between the two stocks.

About Murphy Oil

Murphy Oil Corporation, together with its subsidiaries, operates as an oil and gas exploration and production company in the United States, Canada, and internationally. It explores for and produces crude oil, natural gas, and natural gas liquids. The company was formerly known as Murphy Corporation and changed its name to Murphy Oil Corporation in 1964. The company was incorporated in 1950 and is headquartered in Houston, Texas.

About HyperDynamics

Hyperdynamics Corporation, together with its subsidiaries, operates as an independent oil and gas exploration company. It engages in the acquisition, exploration, and development of oil and natural gas properties in the Republic of Guinea, Northwest Africa. The company owns a 100% interest in a concession that covers an area of approximately 5,000 square miles in offshore Guinea. Hyperdynamics Corporation was founded in 1983 and is headquartered in Houston, Texas.