Headwater Exploration (HWX) Competitors

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

Which has preferable earnings and valuation, HWX or PSK?

PrairieSky Royalty has lower revenue, but higher earnings than Headwater Exploration. Headwater Exploration is trading at a lower price-to-earnings ratio than PrairieSky Royalty, 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$636.59M	2.69	C$184.15M	C$0.78	9.24
PrairieSky Royalty	C$504.60M	11.49	C$214.83M	C$0.93	26.47

Is HWX or PSK more profitable?

PrairieSky Royalty has a net margin of 42.28% compared to Headwater Exploration's net margin of 35.52%. Headwater Exploration's return on equity of 28.63% beat PrairieSky Royalty's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Headwater Exploration	35.52%	28.63%	17.83%
PrairieSky Royalty	42.28%	7.83%	5.99%

Do insiders and institutionals believe in HWX or PSK?

38.8% of Headwater Exploration shares are owned by institutional investors. Comparatively, 75.1% of PrairieSky Royalty shares are owned by institutional investors. 5.1% of Headwater Exploration shares are owned by insiders. Comparatively, 0.5% of PrairieSky Royalty shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Is HWX or PSK a better dividend stock?

Headwater Exploration pays an annual dividend of C$0.42 per share and has a dividend yield of 5.8%. PrairieSky Royalty pays an annual dividend of C$1.02 per share and has a dividend yield of 4.1%. Headwater Exploration pays out 53.8% of its earnings in the form of a dividend. PrairieSky Royalty pays out 109.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Headwater Exploration is clearly the better dividend stock, given its higher yield and lower payout ratio.

Do analysts prefer HWX or PSK?

Headwater Exploration currently has a consensus price target of C$8.17, indicating a potential upside of 13.27%. PrairieSky Royalty has a consensus price target of C$29.86, indicating a potential upside of 21.27%. Given PrairieSky Royalty's higher probable upside, analysts plainly believe PrairieSky Royalty is more favorable than Headwater Exploration.

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
PrairieSky Royalty	0 Sell rating(s)	4 Hold rating(s)	2 Buy rating(s)	2 Strong Buy rating(s)	2.75

Which has more risk and volatility, HWX or PSK?

Headwater Exploration has a beta of 0.788401, indicating that its share price is 21% less volatile than the S&P 500. Comparatively, PrairieSky Royalty has a beta of 0.73078, indicating that its share price is 27% less volatile than the S&P 500.

Does the media favor HWX or PSK?

In the previous week, Headwater Exploration had 5 more articles in the media than PrairieSky Royalty. MarketBeat recorded 8 mentions for Headwater Exploration and 3 mentions for PrairieSky Royalty. PrairieSky Royalty's average media sentiment score of 0.75 beat Headwater Exploration's score of 0.04 indicating that PrairieSky Royalty is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Headwater Exploration	3 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Neutral
PrairieSky Royalty	0 Very Positive mention(s)	2 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Summary

Headwater Exploration beats PrairieSky Royalty on 10 of the 19 factors compared between the two stocks.