Vanguard Natural Resources (VNR) and Halcon Resources Corporation (HK) Critical Survey
Vanguard Natural Resources (NASDAQ: VNR) and Halcon Resources Corporation (NYSE:HK) are both oils/energy companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, valuation, profitability, analyst recommendations, earnings, institutional ownership and dividends.
Institutional and Insider Ownership
4.0% of Vanguard Natural Resources shares are owned by institutional investors. Comparatively, 81.5% of Halcon Resources Corporation shares are owned by institutional investors. 1.3% of Vanguard Natural Resources shares are owned by insiders. Comparatively, 2.8% of Halcon Resources Corporation shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This is a summary of recent ratings and recommmendations for Vanguard Natural Resources and Halcon Resources Corporation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Vanguard Natural Resources||4||1||0||0||1.20|
|Halcon Resources Corporation||0||4||6||0||2.60|
Halcon Resources Corporation has a consensus price target of $9.43, suggesting a potential upside of 51.83%. Given Halcon Resources Corporation’s stronger consensus rating and higher probable upside, analysts clearly believe Halcon Resources Corporation is more favorable than Vanguard Natural Resources.
Earnings & Valuation
This table compares Vanguard Natural Resources 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|
|Vanguard Natural Resources||N/A||N/A||N/A||($9.14)||-0.02|
|Halcon Resources Corporation||$488.44 million||1.91||$223.78 million||($3.77)||-1.65|
Halcon Resources Corporation has higher revenue and earnings than Vanguard Natural Resources. Halcon Resources Corporation is trading at a lower price-to-earnings ratio than Vanguard Natural Resources, indicating that it is currently the more affordable of the two stocks.
This table compares Vanguard Natural Resources and Halcon Resources Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Vanguard Natural Resources||-7.50%||N/A||-2.74%|
|Halcon Resources Corporation||-65.92%||16.78%||4.27%|
Volatility and Risk
Vanguard Natural Resources has a beta of 1.53, indicating that its stock price is 53% more volatile than the S&P 500. Comparatively, Halcon Resources Corporation has a beta of 3.99, indicating that its stock price is 299% more volatile than the S&P 500.
Halcon Resources Corporation beats Vanguard Natural Resources on 10 of the 11 factors compared between the two stocks.
About Vanguard Natural Resources
Vanguard Natural Resources, LLC is focused on the acquisition and development of oil and natural gas properties in the United States. Through its operating subsidiaries, the Company owns properties, and oil and natural gas reserves primarily located in over 10 operating basins: the Green River Basin in Wyoming; the Permian Basin in West Texas and New Mexico; the Gulf Coast Basin in Texas, Louisiana, Mississippi and Alabama; the Anadarko Basin in Oklahoma and North Texas; the Piceance Basin in Colorado; the Big Horn Basin in Wyoming and Montana; the Arkoma Basin in Arkansas and Oklahoma; the Williston Basin in North Dakota and Montana; the Wind River Basin in Wyoming, and the Powder River Basin in Wyoming. The Company owns working interests in approximately 14,460 gross (over 5,280 net) productive wells. In addition, the Company owns approximately 881,510 gross undeveloped leasehold acres surrounding its existing wells.
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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