EQT (NYSE:EQT) & HKN (OTCMKTS:HKNI) Financial Contrast

EQT (NYSE:EQT) and HKN (OTCMKTS:HKNI) are both energy companies, but which is the better investment? We will compare the two companies based on the strength of their risk, earnings, institutional ownership, dividends, analyst recommendations, valuation and profitability.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for EQT and HKN, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EQT	1	5	19	0	2.72
HKN	0	0	0	0	0.00

EQT currently has a consensus price target of $63.77, indicating a potential upside of 13.64%. Given EQT’s stronger consensus rating and higher probable upside, equities research analysts plainly believe EQT is more favorable than HKN.

Profitability

This table compares EQT and HKN’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
EQT	22.59%	6.88%	4.32%
HKN	N/A	N/A	N/A

Valuation and Earnings

This table compares EQT and HKN”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EQT	$5.27 billion	6.64	$230.58 million	$2.92	19.22
HKN	N/A	N/A	N/A	N/A	N/A

EQT has higher revenue and earnings than HKN.

Insider and Institutional Ownership

90.8% of EQT shares are held by institutional investors. 0.7% of EQT shares are held by insiders. Comparatively, 0.1% of HKN shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

EQT beats HKN on 9 of the 9 factors compared between the two stocks.

About EQT

EQT Corporation operates as a natural gas production company in the United States. The company sells natural gas and natural gas liquids to marketers, utilities, and industrial customers through pipelines located in the Appalachian Basin. It also offers marketing services and contractual pipeline capacity management services. The company was formerly known as Equitable Resources Inc. and changed its name to EQT Corporation in February 2009. EQT Corporation was founded in 1878 and is headquartered in Pittsburgh, Pennsylvania.

About HKN

HKN, Inc. operates as an independent energy company. The company owns an oilfield emulsion breaking technology that purifies oilfield emulsions by breaking and separating the emulsions into oil, water, and solids. It also holds non-operated oil and gas leases and mineral interests in properties located in the Bakken and Niobrara shale oil plays; and rights to acreage in the Permian Basin of Texas. The company was founded in 1973 and is based in Southlake, Texas.