Headwater Exploration (HWX) Competitors

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

Does the media prefer HWX or WCP?

In the previous week, Whitecap Resources had 4 more articles in the media than Headwater Exploration. MarketBeat recorded 4 mentions for Whitecap Resources and 0 mentions for Headwater Exploration. Whitecap Resources' average media sentiment score of 0.35 beat Headwater Exploration's score of 0.00 indicating that Whitecap Resources is being referred to more favorably in the news media.

Company	Overall Sentiment
Headwater Exploration	Neutral
Whitecap Resources	Neutral

Do analysts prefer HWX or WCP?

Headwater Exploration presently has a consensus price target of C$8.17, indicating a potential upside of 18.53%. Whitecap Resources has a consensus price target of C$13.13, indicating a potential upside of 29.06%. Given Whitecap Resources' stronger consensus rating and higher probable upside, analysts clearly believe Whitecap Resources 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
Whitecap Resources	0 Sell rating(s)	1 Hold rating(s)	4 Buy rating(s)	2 Strong Buy rating(s)	3.14

Is HWX or WCP more profitable?

Headwater Exploration has a net margin of 35.52% compared to Whitecap Resources' net margin of 24.23%. Headwater Exploration's return on equity of 28.63% beat Whitecap Resources' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Headwater Exploration	35.52%	28.63%	17.83%
Whitecap Resources	24.23%	15.86%	6.86%

Is HWX or WCP a better dividend stock?

Headwater Exploration pays an annual dividend of C$0.40 per share and has a dividend yield of 5.8%. Whitecap Resources pays an annual dividend of C$0.73 per share and has a dividend yield of 7.2%. Headwater Exploration pays out 51.3% of its earnings in the form of a dividend. Whitecap Resources pays out 49.3% 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. Whitecap Resources is clearly the better dividend stock, given its higher yield and lower payout ratio.

Which has more volatility and risk, HWX or WCP?

Headwater Exploration has a beta of 1.55, meaning that its share price is 55% more volatile than the S&P 500. Comparatively, Whitecap Resources has a beta of 2.67, meaning that its share price is 167% more volatile than the S&P 500.

Which has stronger earnings & valuation, HWX or WCP?

Whitecap Resources has higher revenue and earnings than Headwater Exploration. Whitecap Resources is trading at a lower price-to-earnings ratio than Headwater Exploration, 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
Whitecap Resources	C$3.55B	1.67	C$860.11M	C$1.48	6.86

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

32.4% of Headwater Exploration shares are owned by institutional investors. Comparatively, 23.8% of Whitecap Resources shares are owned by institutional investors. 5.1% of Headwater Exploration shares are owned by insiders. Comparatively, 0.8% of Whitecap Resources shares are owned 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.

Summary

Whitecap Resources beats Headwater Exploration on 12 of the 19 factors compared between the two stocks.