Critical Survey: HyperDynamics (OTCMKTS:HDYNQ) vs. Devon Energy (NYSE:DVN)

HyperDynamics (OTCMKTS:HDYNQ) and Devon Energy (NYSE:DVN) are both energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, valuation, analyst recommendations, dividends, risk, institutional ownership and earnings.

Analyst Ratings

This is a breakdown of current recommendations and price targets for HyperDynamics and Devon Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HyperDynamics	0	0	0	0	0.00
Devon Energy	1	6	21	2	2.80

Devon Energy has a consensus target price of $44.62, indicating a potential upside of 24.77%. Given Devon Energy’s stronger consensus rating and higher possible upside, analysts plainly believe Devon Energy is more favorable than HyperDynamics.

Profitability

This table compares HyperDynamics and Devon Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
HyperDynamics	N/A	N/A	N/A
Devon Energy	15.56%	18.14%	8.79%

Valuation and Earnings

This table compares HyperDynamics and Devon Energy”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HyperDynamics	N/A	N/A	N/A	N/A	N/A
Devon Energy	$15.94 billion	1.41	$2.89 billion	$4.25	8.41

Devon Energy has higher revenue and earnings than HyperDynamics.

Institutional and Insider Ownership

69.7% of Devon Energy shares are held by institutional investors. 5.9% of HyperDynamics shares are held by company insiders. Comparatively, 0.7% of Devon Energy shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Volatility & Risk

HyperDynamics has a beta of 6.14, indicating that its share price is 514% more volatile than the S&P 500. Comparatively, Devon Energy has a beta of 0.6, indicating that its share price is 40% less volatile than the S&P 500.

Summary

Devon Energy beats HyperDynamics on 9 of the 11 factors compared between the two stocks.

About HyperDynamics

Hyperdynamics Corporation, together with its subsidiaries, operates as an independent oil and gas exploration company. It engages in the acquisition, exploration, and development of oil and natural gas properties in the Republic of Guinea, Northwest Africa. The company owns a 100% interest in a concession that covers an area of approximately 5,000 square miles in offshore Guinea. Hyperdynamics Corporation was founded in 1983 and is headquartered in Houston, Texas.

About Devon Energy

Devon Energy Corporation, an independent energy company, engages in the exploration, development, and production of oil, natural gas, and natural gas liquids in the United States. It operates in Delaware, Eagle Ford, Anadarko, Williston, and Powder River Basins. The company was founded in 1971 and is headquartered in Oklahoma City, Oklahoma.