Harvest Natural Resources (NYSE: HNR) and Williams Partners (NYSE:WPZ) are both energy companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, valuation, risk, analyst recommendations, institutional ownership, earnings and profitability.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Harvest Natural Resources and Williams Partners, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Harvest Natural Resources 0 0 0 0 N/A
Williams Partners 0 2 10 1 2.92

Williams Partners has a consensus price target of $44.62, indicating a potential upside of 15.11%. Given Williams Partners’ higher probable upside, analysts clearly believe Williams Partners is more favorable than Harvest Natural Resources.

Valuation & Earnings

This table compares Harvest Natural Resources and Williams Partners’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Harvest Natural Resources N/A N/A N/A ($1.53) -4.33
Williams Partners $7.49 billion 5.04 $431.00 million $1.52 25.50

Williams Partners has higher revenue and earnings than Harvest Natural Resources. Harvest Natural Resources is trading at a lower price-to-earnings ratio than Williams Partners, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

53.9% of Harvest Natural Resources shares are held by institutional investors. Comparatively, 22.5% of Williams Partners shares are held by institutional investors. 27.2% of Harvest Natural Resources shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Harvest Natural Resources and Williams Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Harvest Natural Resources N/A -25.98% -17.70%
Williams Partners 17.02% 5.55% 2.90%

Dividends

Williams Partners pays an annual dividend of $2.40 per share and has a dividend yield of 6.2%. Harvest Natural Resources does not pay a dividend. Williams Partners pays out 157.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Williams Partners beats Harvest Natural Resources on 9 of the 12 factors compared between the two stocks.

Harvest Natural Resources Company Profile

Harvest Natural Resources, Inc. (Harvest) is in the process of dissolution and winding up. The Company was previously a petroleum exploration and production company. The Company was engaged in acquiring exploration, development and producing properties in geological basins active hydrocarbon systems.

Williams Partners Company Profile

Williams Partners L.P. is an energy infrastructure company. The Company has operations across the natural gas value chain from gathering, processing, and interstate transportation of natural gas and natural gas liquids to petchem production of ethylene, propylene, and other olefins. It operates through its Northeast G&P, Atlantic-Gulf, West segment. Under the Northeast G&P segment, it owns and operates fractionation facilities at Moundsville, de-ethanization and condensate facilities at its Oak Grove processing plant. The Atlantic Gulf segment includes the Company’s interstate natural gas pipeline, Transcontinental Gas Pipe Line Company, LLC. The West segment includes its interstate natural gas pipeline, Northwest Pipeline, and natural gas gathering processing and treating operations.

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