FutureFuel (NYSE:FF) versus Matador Resources (NYSE:MTDR) Head to Head Survey

Matador Resources (NYSE:MTDR) and FutureFuel (NYSE:FF) are both energy companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, analyst recommendations, institutional ownership, profitability, valuation and earnings.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Matador Resources	$3.70 billion	1.69	$759.22 million	$5.80	8.71
FutureFuel	$95.74 million	1.39	-$49.40 million	($0.70)	-4.32

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

Profitability

This table compares Matador Resources and FutureFuel’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Matador Resources	18.60%	14.32%	6.76%
FutureFuel	-12.59%	-19.75%	-15.15%

Volatility & Risk

Matador Resources has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500. Comparatively, FutureFuel has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for Matador Resources and FutureFuel, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Matador Resources	0	5	11	0	2.69
FutureFuel	1	0	1	0	2.00

Matador Resources currently has a consensus target price of $68.50, indicating a potential upside of 35.65%. FutureFuel has a consensus target price of $9.00, indicating a potential upside of 197.42%. Given FutureFuel’s higher possible upside, analysts plainly believe FutureFuel is more favorable than Matador Resources.

Dividends

Matador Resources pays an annual dividend of $1.50 per share and has a dividend yield of 3.0%. FutureFuel pays an annual dividend of $0.04 per share and has a dividend yield of 1.3%. Matador Resources pays out 25.9% of its earnings in the form of a dividend. FutureFuel pays out -5.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Matador Resources has raised its dividend for 4 consecutive years. Matador Resources is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

92.0% of Matador Resources shares are held by institutional investors. Comparatively, 44.6% of FutureFuel shares are held by institutional investors. 5.9% of Matador Resources shares are held by company insiders. Comparatively, 42.6% of FutureFuel shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Matador Resources beats FutureFuel on 14 of the 17 factors compared between the two stocks.

About Matador Resources

Matador Resources Company is an independent energy company engaged in the exploration, development, production and acquisition of oil and natural gas. Its operations are focused primarily on the Delaware Basin in southeastern New Mexico and West Texas. Alongside its exploration and production business, Matador provides midstream services through its subsidiary San Mateo Midstream. These activities include gathering and processing natural gas and handling produced water, supporting the company’s operations and serving other producers in the region.

About FutureFuel

FutureFuel Corp. is a chemical and biofuels manufacturer headquartered in Missouri. Through its subsidiary, FutureFuel Chemical Company, the business operates a manufacturing facility in Batesville, Arkansas, where it produces specialty chemicals and renewable fuels. The company’s chemical operations manufacture custom and specialty organic chemicals for industrial and commercial customers. Its product capabilities include chemicals used in areas such as coatings, solvents, polymers, agricultural applications and other specialty markets.