Critical Contrast: HyperDynamics (OTCMKTS:HDYNQ) & SandRidge Energy (NYSE:SD)

SandRidge Energy (NYSE:SD) and HyperDynamics (OTCMKTS:HDYNQ) are both energy companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, risk, valuation, profitability and dividends.

Risk & Volatility

SandRidge Energy has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500. Comparatively, HyperDynamics has a beta of 5.44, suggesting that its stock price is 444% more volatile than the S&P 500.

Profitability

This table compares SandRidge Energy and HyperDynamics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SandRidge Energy	46.06%	13.62%	10.93%
HyperDynamics	N/A	N/A	N/A

Insider and Institutional Ownership

61.8% of SandRidge Energy shares are held by institutional investors. 1.6% of SandRidge Energy shares are held by company insiders. Comparatively, 5.9% of HyperDynamics shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares SandRidge Energy and HyperDynamics”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SandRidge Energy	$180.12 million	2.95	$70.20 million	$2.24	6.40
HyperDynamics	N/A	N/A	N/A	N/A	N/A

SandRidge Energy has higher revenue and earnings than HyperDynamics.

Analyst Ratings

This is a summary of recent recommendations and price targets for SandRidge Energy and HyperDynamics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SandRidge Energy	0	2	0	0	2.00
HyperDynamics	0	0	0	0	0.00

Given HyperDynamics’ higher possible upside, analysts clearly believe HyperDynamics is more favorable than SandRidge Energy.

Summary

SandRidge Energy beats HyperDynamics on 6 of the 9 factors compared between the two stocks.

About SandRidge Energy

SandRidge Energy, Inc. engages in the acquisition, development, and production of oil, natural gas, and natural gas liquids in the United States Mid-Continent. The company was incorporated in 2006 and is headquartered in Oklahoma City, Oklahoma.

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.