SandRidge Energy (NYSE: SD) and Halcon Resources Corporation (NYSE:HK) are both small-cap oils/energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, dividends, earnings, valuation, risk, analyst recommendations and institutional ownership.

Profitability

This table compares SandRidge Energy and Halcon Resources Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SandRidge Energy N/A N/A N/A
Halcon Resources Corporation -65.92% 16.78% 4.27%

Insider & Institutional Ownership

73.8% of SandRidge Energy shares are owned by institutional investors. Comparatively, 91.6% of Halcon Resources Corporation shares are owned by institutional investors. 3.6% of SandRidge Energy shares are owned by insiders. Comparatively, 53.9% of Halcon Resources Corporation shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and target prices for SandRidge Energy and Halcon Resources Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SandRidge Energy 0 1 1 0 2.50
Halcon Resources Corporation 0 3 6 0 2.67

SandRidge Energy presently has a consensus price target of $21.00, indicating a potential upside of 5.69%. Halcon Resources Corporation has a consensus price target of $9.43, indicating a potential upside of 50.62%. Given Halcon Resources Corporation’s stronger consensus rating and higher possible upside, analysts clearly believe Halcon Resources Corporation is more favorable than SandRidge Energy.

Earnings & Valuation

This table compares SandRidge Energy 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
SandRidge Energy $374.96 million 1.81 $226.66 million N/A N/A
Halcon Resources Corporation $488.44 million 1.84 $223.78 million ($3.77) -1.66

SandRidge Energy has higher revenue, but lower earnings than Halcon Resources Corporation.

Summary

Halcon Resources Corporation beats SandRidge Energy on 9 of the 11 factors compared between the two stocks.

About SandRidge Energy

SandRidge Energy, Inc. is an oil and natural gas company. The Company is engaged in the exploration, development and production of crude oil, natural gas and natural gas liquids. It operates through two segments: exploration and production, which is engaged in the exploration and production of oil and natural gas properties and includes its proportionate share of the activities of the SandRidge Mississippian Trust I, SandRidge Mississippian Trust II and SandRidge Permian Trust (the Royalty Trusts), and midstream services, which coordinates the delivery of electricity to its exploration and production operations in the Mid-Continent. It focuses on exploration and production activities in the Mid-Continent and Rockies regions of the United States. It owns and operates additional interests in west Texas. It also operates businesses and infrastructure systems, including a saltwater gathering and disposal system, and an electrical transmission system.

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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