Headwater Exploration (HWX) Competitors

Headwater Exploration (TSE:HWX) and Strathcona Resources (TSE:SCR) are both energy companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, valuation, institutional ownership, community ranking, analyst recommendations, earnings, risk, profitability and media sentiment.

Is HWX or SCR more profitable?

Headwater Exploration has a net margin of 35.52% compared to Strathcona Resources' net margin of 15.04%. Headwater Exploration's return on equity of 28.63% beat Strathcona Resources' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Headwater Exploration	35.52%	28.63%	17.83%
Strathcona Resources	15.04%	9.70%	6.81%

Do analysts rate HWX or SCR?

Headwater Exploration presently has a consensus price target of C$8.17, indicating a potential upside of 18.53%. Strathcona Resources has a consensus price target of C$35.29, indicating a potential upside of 11.59%. Given Headwater Exploration's stronger consensus rating and higher probable upside, equities analysts clearly believe Headwater Exploration is more favorable than Strathcona Resources.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Headwater Exploration	0 Sell rating(s)	1 Hold rating(s)	3 Buy rating(s)	1 Strong Buy rating(s)	3.00
Strathcona Resources	0 Sell rating(s)	4 Hold rating(s)	0 Buy rating(s)	1 Strong Buy rating(s)	2.40

Do institutionals and insiders have more ownership in HWX or SCR?

32.4% of Headwater Exploration shares are held by institutional investors. Comparatively, 0.4% of Strathcona Resources shares are held by institutional investors. 5.1% of Headwater Exploration shares are held by insiders. Comparatively, 91.3% of Strathcona Resources shares are held by 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.

Does the MarketBeat Community believe in HWX or SCR?

Strathcona Resources received 66 more outperform votes than Headwater Exploration when rated by MarketBeat users. Likewise, 59.02% of users gave Strathcona Resources an outperform vote while only 55.26% of users gave Headwater Exploration an outperform vote.

Company	Underperform	Outperform
Headwater Exploration	Outperform Votes 42 55.26%	Underperform Votes 34 44.74%
Strathcona Resources	Outperform Votes 108 59.02%	Underperform Votes 75 40.98%

Is HWX or SCR a better dividend stock?

Headwater Exploration pays an annual dividend of C$0.40 per share and has a dividend yield of 5.8%. Strathcona Resources pays an annual dividend of C$1.00 per share and has a dividend yield of 3.2%. Headwater Exploration pays out 51.3% of its earnings in the form of a dividend. Strathcona Resources pays out 57.7% 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. Headwater Exploration is clearly the better dividend stock, given its higher yield and lower payout ratio.

Does the media refer more to HWX or SCR?

In the previous week, Strathcona Resources had 5 more articles in the media than Headwater Exploration. MarketBeat recorded 5 mentions for Strathcona Resources and 0 mentions for Headwater Exploration. Strathcona Resources' average media sentiment score of 1.46 beat Headwater Exploration's score of 0.00 indicating that Strathcona Resources is being referred to more favorably in the news media.

Company	Overall Sentiment
Headwater Exploration	Neutral
Strathcona Resources	Positive

Which has stronger earnings & valuation, HWX or SCR?

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

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Headwater Exploration	C$518.46M	3.15	C$184.15M	C$0.78	8.83
Strathcona Resources	C$2.46B	2.75	C$370.36M	C$1.73	18.24

Summary

Headwater Exploration beats Strathcona Resources on 10 of the 19 factors compared between the two stocks.