Analyzing Battalion Oil (NYSE:BATL) & Mach Natural Resources (NYSE:MNR)

Battalion Oil (NYSE:BATL) and Mach Natural Resources (NYSE:MNR) are both small-cap energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, valuation and dividends.

Analyst Recommendations

This is a summary of current ratings and target prices for Battalion Oil and Mach Natural Resources, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Battalion Oil	0	0	0	0	0.00
Mach Natural Resources	0	0	2	1	3.33

Mach Natural Resources has a consensus target price of $24.00, suggesting a potential upside of 63.71%. Given Mach Natural Resources’ stronger consensus rating and higher probable upside, analysts plainly believe Mach Natural Resources is more favorable than Battalion Oil.

Volatility and Risk

Battalion Oil has a beta of 0.79, indicating that its stock price is 21% less volatile than the S&P 500. Comparatively, Mach Natural Resources has a beta of -0.17, indicating that its stock price is 117% less volatile than the S&P 500.

Valuation and Earnings

This table compares Battalion Oil and Mach Natural Resources”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Battalion Oil	$191.50 million	0.14	-$3.05 million	($2.42)	-0.68
Mach Natural Resources	$957.24 million	1.81	$346.56 million	$1.60	9.16

Mach Natural Resources has higher revenue and earnings than Battalion Oil. Battalion Oil is trading at a lower price-to-earnings ratio than Mach Natural Resources, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Battalion Oil and Mach Natural Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Battalion Oil	12.02%	-137.74%	-11.27%
Mach Natural Resources	25.17%	23.58%	12.00%

Insider and Institutional Ownership

86.0% of Battalion Oil shares are owned by institutional investors. Comparatively, 78.4% of Mach Natural Resources shares are owned by institutional investors. 62.0% of Battalion Oil shares are owned by company insiders. Comparatively, 87.8% of Mach Natural Resources shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Mach Natural Resources beats Battalion Oil on 13 of the 15 factors compared between the two stocks.

About Battalion Oil

Battalion Oil Corporation, an independent energy company, engages in the acquisition, production, exploration, and development of onshore oil and natural gas assets in the United States. It holds interests in the Delaware Basin located in the counties of Pecos, Ward, Reeves, and Winkler, Texas. It serves independent marketers, and oil and natural gas and gas pipeline companies. The company was formerly known as Halcón Resources Corporation and changed its name to Battalion Oil Corporation in January 2020. Battalion Oil Corporation was founded in 1987 and is headquartered in Houston, Texas.

About Mach Natural Resources

Mach Natural Resources LP, an independent upstream oil and gas company, focuses on the acquisition, development, and production of oil, natural gas, and natural gas liquids reserves in the Anadarko Basin region of Western Oklahoma, Southern Kansas, and the panhandle of Texas. It also owns a portfolio of midstream assets, as well as owns plants and water infrastructure. The company was incorporated in 2023 and is headquartered in Oklahoma City, Oklahoma.