Concho Resources (NYSE:CXO) and Matador Resources (NYSE:MTDR) are both oils/energy companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, dividends, profitability, analyst recommendations, valuation, risk and institutional ownership.
Risk & Volatility
Concho Resources has a beta of 1.87, indicating that its stock price is 87% more volatile than the S&P 500. Comparatively, Matador Resources has a beta of 4.79, indicating that its stock price is 379% more volatile than the S&P 500.
Profitability
This table compares Concho Resources and Matador Resources' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Concho Resources | -256.19% | 5.27% | 3.59% |
| Matador Resources | -15.93% | 5.30% | 2.55% |
Valuation & Earnings
This table compares Concho Resources and Matador Resources' revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Concho Resources | $4.59 billion | 1.74 | $-705,000,000.00 | $3.05 | 13.33 |
| Matador Resources | $983.67 million | 0.76 | $87.78 million | $1.20 | 5.36 |
Matador Resources has lower revenue, but higher earnings than Concho Resources. Matador Resources is trading at a lower price-to-earnings ratio than Concho Resources, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent recommendations and price targets for Concho Resources and Matador Resources, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Concho Resources | 0 | 6 | 18 | 0 | 2.75 |
| Matador Resources | 0 | 6 | 12 | 0 | 2.67 |
Concho Resources currently has a consensus price target of $72.7917, indicating a potential upside of 78.50%. Matador Resources has a consensus price target of $12.6719, indicating a potential upside of 82.07%. Given Matador Resources' higher possible upside, analysts clearly believe Matador Resources is more favorable than Concho Resources.
Insider & Institutional Ownership
90.6% of Concho Resources shares are held by institutional investors. Comparatively, 88.1% of Matador Resources shares are held by institutional investors. 1.1% of Concho Resources shares are held by company insiders. Comparatively, 7.4% of Matador Resources shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Summary
Concho Resources beats Matador Resources on 8 of the 14 factors compared between the two stocks.
