HighPeak Energy (NASDAQ:HPK – Get Free Report) and Antero Midstream (NYSE:AM – Get Free Report) are both energy companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, valuation, risk and profitability.
Volatility and Risk
HighPeak Energy has a beta of 0.39, suggesting that its share price is 61% less volatile than the S&P 500. Comparatively, Antero Midstream has a beta of 0.65, suggesting that its share price is 35% less volatile than the S&P 500.
Dividends
HighPeak Energy pays an annual dividend of $0.16 per share and has a dividend yield of 1.9%. Antero Midstream pays an annual dividend of $0.90 per share and has a dividend yield of 4.2%. HighPeak Energy pays out -20.3% of its earnings in the form of a dividend. Antero Midstream pays out 107.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. HighPeak Energy has raised its dividend for 1 consecutive years.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| HighPeak Energy | $862.88 million | 1.22 | $18.96 million | ($0.79) | -10.56 |
| Antero Midstream | $1.19 billion | 8.47 | $413.16 million | $0.84 | 25.25 |
Antero Midstream has higher revenue and earnings than HighPeak Energy. HighPeak Energy is trading at a lower price-to-earnings ratio than Antero Midstream, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
24.1% of HighPeak Energy shares are held by institutional investors. Comparatively, 54.0% of Antero Midstream shares are held by institutional investors. 5.6% of HighPeak Energy shares are held by company insiders. Comparatively, 1.1% of Antero Midstream shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Profitability
This table compares HighPeak Energy and Antero Midstream’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| HighPeak Energy | -10.52% | -1.44% | -0.71% |
| Antero Midstream | 32.41% | 20.19% | 6.56% |
Analyst Ratings
This is a breakdown of recent ratings and target prices for HighPeak Energy and Antero Midstream, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| HighPeak Energy | 1 | 1 | 0 | 1 | 2.33 |
| Antero Midstream | 0 | 5 | 1 | 0 | 2.17 |
HighPeak Energy currently has a consensus price target of $12.00, indicating a potential upside of 43.88%. Antero Midstream has a consensus price target of $24.50, indicating a potential upside of 15.51%. Given HighPeak Energy’s stronger consensus rating and higher possible upside, analysts clearly believe HighPeak Energy is more favorable than Antero Midstream.
Summary
Antero Midstream beats HighPeak Energy on 12 of the 18 factors compared between the two stocks.
About HighPeak Energy
HighPeak Energy, Inc., an independent oil and natural gas company, engages in the exploration, development, and production of crude oil, natural gas, and natural gas liquids reserves in the Permian Basin in West Texas and Eastern New Mexico. The company was incorporated in 2019 and is headquartered in Fort Worth, Texas.
About Antero Midstream
Antero Midstream Corporation owns, operates, and develops midstream energy assets in the Appalachian Basin. It operates in two segments, Gathering and Processing, and Water Handling. The Gathering and Processing segment includes a network of gathering pipelines and compressor stations that collects and processes production from Antero Resources' wells in West Virginia and Ohio. The Water Handling segment delivers fresh water from sources, including the Ohio River, local reservoirs, and various regional waterways; uses water handling systems to transport flowback and produced water; and offers pumping stations, water storage, and blending facilities. The company was founded in 2002 and is headquartered in Denver, Colorado.
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