Reviewing Murphy Oil (NYSE:MUR) and HyperDynamics (OTCMKTS:HDYNQ)

Murphy Oil (NYSE:MUR) and HyperDynamics (OTCMKTS:HDYNQ) are both energy companies, but which is the better business? We will compare the two companies based on the strength of their dividends, valuation, earnings, analyst recommendations, profitability, institutional ownership and risk.

Volatility and Risk

Murphy Oil has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500. Comparatively, HyperDynamics has a beta of 2.51, suggesting that its share price is 151% more volatile than the S&P 500.

Earnings & Valuation

This table compares Murphy Oil and HyperDynamics”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Murphy Oil	$3.03 billion	1.33	$407.17 million	$1.93	14.67
HyperDynamics	N/A	N/A	N/A	N/A	N/A

Murphy Oil has higher revenue and earnings than HyperDynamics.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Murphy Oil and HyperDynamics, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Murphy Oil	3	11	1	0	1.87
HyperDynamics	0	0	0	0	0.00

Murphy Oil presently has a consensus price target of $28.25, suggesting a potential downside of 0.19%. Given HyperDynamics’ higher possible upside, analysts plainly believe HyperDynamics is more favorable than Murphy Oil.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Murphy Oil	10.20%	5.25%	2.88%
HyperDynamics	N/A	N/A	N/A

Institutional & Insider Ownership

78.3% of Murphy Oil shares are owned by institutional investors. 6.5% of Murphy Oil shares are owned by insiders. Comparatively, 5.9% of HyperDynamics shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

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

About Murphy Oil

Murphy Oil Corporation, together with its subsidiaries, operates as an oil and gas exploration and production company in the United States, Canada, and internationally. It explores for and produces crude oil, natural gas, and natural gas liquids. The company was formerly known as Murphy Corporation and changed its name to Murphy Oil Corporation in 1964. The company was incorporated in 1950 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.