Comparing Halcon Resources (OTCMKTS:HKRSQ) & Evolution Petroleum (NYSE:EPM)

Halcon Resources (OTCMKTS:HKRSQ) and Evolution Petroleum (NYSE:EPM) are both small-cap energy companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, risk, analyst recommendations, valuation, institutional ownership and profitability.

Profitability

This table compares Halcon Resources and Evolution Petroleum’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Halcon Resources	-324.96%	-238.22%	-73.12%
Evolution Petroleum	2.04%	2.42%	1.20%

Valuation and Earnings

This table compares Halcon Resources and Evolution Petroleum”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Halcon Resources	$224.68 million	0.05	-$1.17 billion	N/A	N/A
Evolution Petroleum	$85.23 million	1.52	$4.08 million	($0.01)	-369.00

Evolution Petroleum has lower revenue, but higher earnings than Halcon Resources.

Institutional and Insider Ownership

60.1% of Evolution Petroleum shares are owned by institutional investors. 6.1% of Halcon Resources shares are owned by company insiders. Comparatively, 10.5% of Evolution Petroleum shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and target prices for Halcon Resources and Evolution Petroleum, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Halcon Resources	0	0	0	0	0.00
Evolution Petroleum	0	2	2	1	2.80

Evolution Petroleum has a consensus target price of $5.63, indicating a potential upside of 52.44%. Given Evolution Petroleum’s stronger consensus rating and higher probable upside, analysts clearly believe Evolution Petroleum is more favorable than Halcon Resources.

Summary

Evolution Petroleum beats Halcon Resources on 11 of the 12 factors compared between the two stocks.

About Halcon Resources

Halcón Resources Corporation, an independent energy company, engages in the acquisition, production, exploration, and development of onshore oil and natural gas assets in the United States. As of December 31, 2018, the company held interests in 56,900 net acres in the Delaware Basin, located in Pecos, Reeves, Ward, and Winkler Counties, Texas. As of December 31, 2018, it had estimated proved reserves of approximately 85.2 million barrels of oil equivalent comprising 50.7 million barrels of crude oil, 17.1 million barrels of natural gas liquids, and 104.7 billion cubic feet of natural gas. The company was formerly known as RAM Energy Resources, Inc. and changed its name to Halcón Resources Corporation in February 2012. Halcón Resources Corporation was founded in 1987 and is headquartered in Houston, Texas. On August 7, 2019, Halcón Resources Corporation along with its affiliates filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for Southern District of Texas.

About Evolution Petroleum

Evolution Petroleum Corporation, an energy company, engages in the development, production, ownership, and exploitation of onshore oil and gas properties in the United States. The company holds a non-operated interests in the SCOOP and STACK plays located in Central Oklahoma; the Chaveroo Field situated in Chaves and Roosevelt Counties, New Mexico; the Jonah Field located in Sublette County, Wyoming; the Williston Basin situated in Williston, North Dakota; the Barnett Shale field located in North Texas; the Hamilton Dome situated in Hot Springs County, Wyoming; and the Delhi Field, an onshore CO2-EOR project located in northeast Louisiana in Franklin, Madison, and Richland Parishes, as well as small overriding royalty interests in four onshore central Texas wells. The company was founded in 2003 and is based in Houston, Texas.