Critical Review: Noble (NE) and Blue Ridge Mountain Resources (MHRCQ)

Noble (NYSE: NE) and Blue Ridge Mountain Resources (OTCMKTS:MHRCQ) are both small-cap oils/energy companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, dividends, analyst recommendations, earnings and profitability.

Analyst Recommendations

This is a breakdown of recent ratings for Noble and Blue Ridge Mountain Resources, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Noble 5 16 4 0 1.96
Blue Ridge Mountain Resources 0 0 0 0 N/A

Noble currently has a consensus target price of $5.60, indicating a potential upside of 25.51%. Given Noble’s higher possible upside, research analysts plainly believe Noble is more favorable than Blue Ridge Mountain Resources.

Institutional & Insider Ownership

87.3% of Noble shares are held by institutional investors. 1.6% of Noble shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Noble has a beta of 2.34, suggesting that its stock price is 134% more volatile than the S&P 500. Comparatively, Blue Ridge Mountain Resources has a beta of 2.75, suggesting that its stock price is 175% more volatile than the S&P 500.

Earnings & Valuation

This table compares Noble and Blue Ridge Mountain Resources’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Noble $2.30 billion 0.47 -$929.58 million ($7.38) -0.60
Blue Ridge Mountain Resources N/A N/A N/A ($1.02) 0.00

Blue Ridge Mountain Resources has lower revenue, but higher earnings than Noble. Noble is trading at a lower price-to-earnings ratio than Blue Ridge Mountain Resources, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Noble and Blue Ridge Mountain Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Noble -136.22% -3.94% -2.19%
Blue Ridge Mountain Resources -2,141.83% N/A -174.34%

Summary

Noble beats Blue Ridge Mountain Resources on 7 of the 10 factors compared between the two stocks.

About Noble

Noble Corporation is an offshore drilling contractor for the oil and gas industry. The Company performs contract drilling services with its fleet of 79 mobile offshore drilling units and one floating production storage and offloading unit (NYSE:NE) located globally.

About Blue Ridge Mountain Resources

Blue Ridge Mountain Resources, Inc., formerly Magnum Hunter Resources Corporation, is an independent exploration and production company engaged in the acquisition, development and production of natural gas, natural gas liquids and crude oil, primarily in the states of West Virginia and Ohio. The Company operates through three segments: Upstream, Midstream and Oil Field Services. The Upstream segment is organized and operated to explore for and produce crude oil and natural gas within the geographic boundaries of the United States and Canada. The Midstream segment consists primarily of Eureka Hunter Holdings, LLC (Eureka Midstream Holdings), which markets natural gas and operates a network of pipelines and compression stations that gather natural gas and natural gas liquids (NGLs) in the United States for transportation to market. The Oilfield Services segment provides drilling services to oil and natural gas exploration and production companies.

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