Comparing EQT (NYSE:EQT) and Legacy Reserves (OTCMKTS:LGCYQ)

EQT (NYSE:EQT) and Legacy Reserves (OTCMKTS:LGCYQ) are both energy companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, earnings, institutional ownership, risk and dividends.

Institutional and Insider Ownership

90.8% of EQT shares are held by institutional investors. 0.7% of EQT shares are held by insiders. Comparatively, 0.8% of Legacy Reserves shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares EQT and Legacy Reserves’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
EQT	15.87%	6.24%	3.70%
Legacy Reserves	N/A	N/A	N/A

Analyst Ratings

This is a summary of current ratings and target prices for EQT and Legacy Reserves, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EQT	1	5	15	0	2.67
Legacy Reserves	0	0	0	0	0.00

EQT currently has a consensus price target of $62.14, indicating a potential upside of 19.75%. Given EQT’s stronger consensus rating and higher probable upside, research analysts plainly believe EQT is more favorable than Legacy Reserves.

Valuation & Earnings

This table compares EQT and Legacy Reserves”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EQT	$5.27 billion	6.14	$230.58 million	$1.85	28.05
Legacy Reserves	N/A	N/A	N/A	N/A	N/A

EQT has higher revenue and earnings than Legacy Reserves.

Summary

EQT beats Legacy Reserves on 8 of the 9 factors compared between the two stocks.

About EQT

EQT Corporation operates as a natural gas production company in the United States. The company sells natural gas and natural gas liquids to marketers, utilities, and industrial customers through pipelines located in the Appalachian Basin. It also offers marketing services and contractual pipeline capacity management services. The company was formerly known as Equitable Resources Inc. and changed its name to EQT Corporation in February 2009. EQT Corporation was founded in 1878 and is headquartered in Pittsburgh, Pennsylvania.

About Legacy Reserves

Legacy Reserves Inc., an independent energy company, engages in the acquisition, development, and production of oil and natural gas properties in the United States. It focuses on the horizontal development of unconventional plays in the Permian Basin and the management of shallow-decline oil and natural gas wells in the regions of Permian Basin, East Texas, Rocky Mountain, and Mid-Continent. As of December 31, 2018, the company had proved reserves of approximately 164.9 million barrels of crude oil equivalent covering natural gas, as well as oil and natural gas liquids. Legacy Reserves Inc. was founded in 2005 and is based in Midland, Texas. On June 18, 2019, Legacy Reserves Inc., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas.