Contrasting Halcon Resources (OTCMKTS:HKRSQ) & TETRA Technologies (NYSE:TTI)

Halcon Resources (OTCMKTS:HKRSQ) and TETRA Technologies (NYSE:TTI) are both small-cap oils/energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, dividends, valuation, institutional ownership and earnings.

Insider and Institutional Ownership

61.8% of TETRA Technologies shares are held by institutional investors. 6.1% of Halcon Resources shares are held by company insiders. Comparatively, 4.8% of TETRA Technologies shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Halcon Resources and TETRA Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Halcon Resources	0	0	0	0	N/A
TETRA Technologies	0	0	2	0	3.00

TETRA Technologies has a consensus target price of $7.50, indicating a potential upside of 18.67%. Given TETRA Technologies’ higher probable upside, analysts clearly believe TETRA Technologies is more favorable than Halcon Resources.

Profitability

This table compares Halcon Resources and TETRA Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Halcon Resources	-324.96%	-238.22%	-73.12%
TETRA Technologies	3.75%	22.94%	6.04%

Valuation and Earnings

This table compares Halcon Resources and TETRA Technologies’ gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Halcon Resources	$224.68 million	0.05	-$1.17 billion	N/A	N/A
TETRA Technologies	$553.21 million	1.48	$7.84 million	$0.18	35.11

TETRA Technologies has higher revenue and earnings than Halcon Resources.

Summary

TETRA Technologies beats Halcon Resources on 9 of the 10 factors compared between the two stocks.

About Halcon Resources

Halcón Resources Corporation, an independent energy company, engages in the acquisition, production, exploration, and development of onshore oil and natural gas assets in the United States. As of December 31, 2018, the company held interests in 56,900 net acres in the Delaware Basin, located in Pecos, Reeves, Ward, and Winkler Counties, Texas. As of December 31, 2018, it had estimated proved reserves of approximately 85.2 million barrels of oil equivalent comprising 50.7 million barrels of crude oil, 17.1 million barrels of natural gas liquids, and 104.7 billion cubic feet of natural gas. The company was formerly known as RAM Energy Resources, Inc. and changed its name to Halcón Resources Corporation in February 2012. Halcón Resources Corporation was founded in 1987 and is headquartered in Houston, Texas. On August 7, 2019, Halcón Resources Corporation along with its affiliates filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for Southern District of Texas.

About TETRA Technologies

TETRA Technologies, Inc., together with its subsidiaries, operates as an energy services and solutions company. It operates through two segments, Completion Fluids & Products Division and Water & Flowback Services. The Completion Fluids & Products segment manufactures and markets clear brine fluids, additives, and associated products and services to the oil and gas industry for use in well drilling, completion, and workover operations in the United States, as well as in Latin America, Europe, Asia, the Middle East, and Africa. This segment also markets liquid and dry calcium chloride products; and TETRA PureFlow ultra-pure zinc bromide to battery technology companies. The Water & Flowback Services segment provides water management services for onshore oil and gas operators. This segment also offers frac flowback, production well testing, and other associated services in oil and gas producing regions in the United States and Mexico, as well as in various basins in Latin America, Africa, Europe, and the Middle East. The company was incorporated in 1981 and is headquartered in The Woodlands, Texas.