Critical Analysis: APA (NASDAQ:APA) & HyperDynamics (OTCMKTS:HDYNQ)

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for APA and HyperDynamics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
APA	2	16	3	0	2.05
HyperDynamics	0	0	0	0	0.00

APA currently has a consensus target price of $24.50, indicating a potential upside of 0.49%. Given APA’s stronger consensus rating and higher probable upside, equities analysts plainly believe APA is more favorable than HyperDynamics.

Insider and Institutional Ownership

83.0% of APA shares are held by institutional investors. 0.7% of APA shares are held by insiders. Comparatively, 5.9% of HyperDynamics shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
APA	10.53%	20.98%	7.21%
HyperDynamics	N/A	N/A	N/A

Volatility & Risk

APA has a beta of 1.12, suggesting that its share price is 12% more volatile than the S&P 500. Comparatively, HyperDynamics has a beta of 9.61, suggesting that its share price is 861% more volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
APA	$9.64 billion	0.90	$804.00 million	$4.16	5.86
HyperDynamics	N/A	N/A	N/A	N/A	N/A

APA has higher revenue and earnings than HyperDynamics.

Summary

APA beats HyperDynamics on 8 of the 10 factors compared between the two stocks.

About APA

APA Corporation, an independent energy company, explores for, develops, and produces natural gas, crude oil, and natural gas liquids. It has oil and gas operations in the United States, Egypt, and North Sea. The company also has exploration and appraisal activities in Suriname, as well as holds interests in projects located in Uruguay and internationally. APA Corporation was incorporated in 1954 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.