WildHorse Resource Development (NYSE: WRD) and Resolute Energy (NYSE:REN) are both oils/energy companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, institutional ownership, valuation, profitability, earnings and dividends.
Volatility and Risk
WildHorse Resource Development has a beta of -0.25, indicating that its stock price is 125% less volatile than the S&P 500. Comparatively, Resolute Energy has a beta of 3.21, indicating that its stock price is 221% more volatile than the S&P 500.
This table compares WildHorse Resource Development and Resolute Energy’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|WildHorse Resource Development||11.68%||4.31%||2.08%|
Earnings and Valuation
This table compares WildHorse Resource Development and Resolute Energy’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|WildHorse Resource Development||$427.19 million||5.44||$49.88 million||$0.43||53.42|
|Resolute Energy||$303.48 million||2.53||-$1.23 million||$0.06||567.83|
WildHorse Resource Development has higher revenue and earnings than Resolute Energy. WildHorse Resource Development is trading at a lower price-to-earnings ratio than Resolute Energy, indicating that it is currently the more affordable of the two stocks.
This is a summary of current recommendations for WildHorse Resource Development and Resolute Energy, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|WildHorse Resource Development||0||2||7||0||2.78|
WildHorse Resource Development currently has a consensus target price of $23.22, suggesting a potential upside of 1.10%. Resolute Energy has a consensus target price of $43.63, suggesting a potential upside of 28.05%. Given Resolute Energy’s higher probable upside, analysts plainly believe Resolute Energy is more favorable than WildHorse Resource Development.
WildHorse Resource Development beats Resolute Energy on 8 of the 12 factors compared between the two stocks.
About WildHorse Resource Development
WildHorse Resource Development Corporation, an independent oil and natural gas company, focuses on the acquisition, exploitation, development, and production of oil, natural gas, and natural gas liquid resources. The company primarily holds interests in the Eagle Ford Shale in East Texas and the overpressured Cotton Valley formation in North Louisiana. As of December 31, 2017, it had a total leasehold position of approximately 387,091 net acres in the Eagle Ford Shale and 90,062 net acres in overpressured Cotton Valley formation, as well as 454.3 million barrels of oil equivalent of total proved reserves. The company was founded in 2013 and is headquartered in Houston, Texas.
About Resolute Energy
Resolute Energy Corporation, an independent oil and gas company, engages in the acquisition, exploitation, exploration for, and development of oil and gas properties in the United States. Its principal project area is located in the Delaware Basin portion of the Permian Basin, Reeves County. As of December 31, 2017, it had interests in approximately 27,100 gross acres located in the Permian Basin of Texas; and its estimated net proved reserves were approximately 53.4 million barrels of oil equivalent. Resolute Energy Corporation was founded in 2004 and is based in Denver, Colorado.
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