Reviewing Halcon Resources (OTCMKTS:HKRSQ) and Evolution Petroleum (NYSE:EPM)

Evolution Petroleum (NYSE:EPM) and Halcon Resources (OTCMKTS:HKRSQ) are both small-cap energy companies, but which is the better stock? We will compare the two companies based on the strength of their risk, analyst recommendations, institutional ownership, valuation, dividends, earnings and profitability.

Profitability

This table compares Evolution Petroleum and Halcon Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Evolution Petroleum	2.04%	2.42%	1.20%
Halcon Resources	-324.96%	-238.22%	-73.12%

Earnings & Valuation

This table compares Evolution Petroleum and Halcon Resources”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Evolution Petroleum	$85.23 million	1.44	$4.08 million	($0.01)	-353.00
Halcon Resources	$224.68 million	0.05	-$1.17 billion	N/A	N/A

Evolution Petroleum has higher earnings, but lower revenue than Halcon Resources.

Analyst Ratings

This is a breakdown of recent ratings for Evolution Petroleum and Halcon Resources, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Evolution Petroleum	0	2	3	0	2.60
Halcon Resources	0	0	0	0	0.00

Evolution Petroleum presently has a consensus target price of $5.73, indicating a potential upside of 62.42%. Given Evolution Petroleum’s stronger consensus rating and higher probable upside, research analysts clearly believe Evolution Petroleum is more favorable than Halcon Resources.

Institutional & Insider Ownership

60.1% of Evolution Petroleum shares are held by institutional investors. 10.5% of Evolution Petroleum shares are held by insiders. Comparatively, 6.1% of Halcon Resources shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

Evolution Petroleum beats Halcon Resources on 10 of the 11 factors compared between the two stocks.

About Evolution Petroleum

Evolution Petroleum Corporation, an energy company, engages in the development, production, ownership, and exploitation of onshore oil and gas properties in the United States. The company holds a non-operated interests in the SCOOP and STACK plays located in Central Oklahoma; the Chaveroo Field situated in Chaves and Roosevelt Counties, New Mexico; the Jonah Field located in Sublette County, Wyoming; the Williston Basin situated in Williston, North Dakota; the Barnett Shale field located in North Texas; the Hamilton Dome situated in Hot Springs County, Wyoming; and the Delhi Field, an onshore CO2-EOR project located in northeast Louisiana in Franklin, Madison, and Richland Parishes, as well as small overriding royalty interests in four onshore central Texas wells. The company was founded in 2003 and is based in Houston, Texas.

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.