Houston American Energy (NYSEAMERICAN:HUSA) and HighPoint Resources (NYSE:HPR) are both small-cap oils/energy companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, analyst recommendations, profitability, dividends and risk.
Valuation and Earnings
This table compares Houston American Energy and HighPoint Resources' top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Houston American Energy | $1 million | 15.77 | $-2,520,000.00 | N/A | N/A |
HighPoint Resources | $452.66 million | 0.10 | $-134,830,000.00 | ($10.00) | -1.01 |
Houston American Energy has higher earnings, but lower revenue than HighPoint Resources.
Insider & Institutional Ownership
10.0% of Houston American Energy shares are owned by institutional investors. 6.8% of Houston American Energy shares are owned by insiders. Comparatively, 1.7% of HighPoint Resources shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Analyst Ratings
This is a summary of current recommendations and price targets for Houston American Energy and HighPoint Resources, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Houston American Energy | 0 | 0 | 0 | 0 | N/A |
HighPoint Resources | 1 | 3 | 0 | 0 | 1.75 |
HighPoint Resources has a consensus target price of $45.00, suggesting a potential upside of 346.43%. Given HighPoint Resources' higher possible upside, analysts clearly believe HighPoint Resources is more favorable than Houston American Energy.
Profitability
This table compares Houston American Energy and HighPoint Resources' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Houston American Energy | -470.67% | -30.31% | -28.10% |
HighPoint Resources | -367.56% | 3.05% | 0.69% |
Risk and Volatility
Houston American Energy has a beta of 0.5, suggesting that its share price is 50% less volatile than the S&P 500. Comparatively, HighPoint Resources has a beta of 4.5, suggesting that its share price is 350% more volatile than the S&P 500.
Summary
HighPoint Resources beats Houston American Energy on 6 of the 10 factors compared between the two stocks.