Financial Contrast: Noble Corporation (NE) and Halcon Resources Corporation (HK)
Noble Corporation (NYSE: NE) and Halcon Resources Corporation (NYSE:HK) are both small-cap oils/energy companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, analyst recommendations, profitabiliy, dividends and risk.
This is a summary of current recommendations and price targets for Noble Corporation and Halcon Resources Corporation, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Halcon Resources Corporation||0||4||6||0||2.60|
Noble Corporation currently has a consensus target price of $5.96, suggesting a potential upside of 75.81%. Halcon Resources Corporation has a consensus target price of $9.43, suggesting a potential upside of 53.06%. Given Noble Corporation’s higher possible upside, equities analysts clearly believe Noble Corporation is more favorable than Halcon Resources Corporation.
Earnings & Valuation
This table compares Noble Corporation and Halcon Resources Corporation’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Noble Corporation||$2.01 billion||0.41||$1.16 billion||($7.21)||-0.47|
|Halcon Resources Corporation||$488.44 million||1.89||$977.65 million||($3.77)||-1.63|
Noble Corporation has higher revenue and earnings than Halcon Resources Corporation. Halcon Resources Corporation is trading at a lower price-to-earnings ratio than Noble Corporation, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Noble Corporation has a beta of 2.16, meaning that its stock price is 116% more volatile than the S&P 500. Comparatively, Halcon Resources Corporation has a beta of 3.99, meaning that its stock price is 299% more volatile than the S&P 500.
This table compares Noble Corporation and Halcon Resources Corporation’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%|
Institutional and Insider Ownership
98.7% of Noble Corporation shares are held by institutional investors. Comparatively, 78.6% of Halcon Resources Corporation shares are held by institutional investors. 1.6% of Noble Corporation shares are held by company insiders. Comparatively, 2.8% of Halcon Resources Corporation shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Halcon Resources Corporation beats Noble Corporation on 9 of the 13 factors compared between the two stocks.
About Noble Corporation
Noble Corporation is an offshore drilling contractor for the oil and gas industry. The Company performs contract drilling services with its fleet of 79 mobile offshore drilling units and one floating production storage and offloading unit (NYSE:NE) located globally.
About Halcon Resources Corporation
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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