Analyzing HyperDynamics (OTCMKTS:HDYNQ) and Northern Oil and Gas (NYSE:NOG)

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

Analyst Ratings

This is a breakdown of recent recommendations for Northern Oil and Gas and HyperDynamics, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Northern Oil and Gas	2	4	4	0	2.20
HyperDynamics	0	0	0	0	0.00

Northern Oil and Gas presently has a consensus price target of $30.62, suggesting a potential upside of 38.71%. Given Northern Oil and Gas’ stronger consensus rating and higher possible upside, equities analysts plainly believe Northern Oil and Gas is more favorable than HyperDynamics.

Risk and Volatility

Northern Oil and Gas has a beta of 0.69, indicating that its stock price is 31% less volatile than the S&P 500. Comparatively, HyperDynamics has a beta of 5.38, indicating that its stock price is 438% more volatile than the S&P 500.

Profitability

This table compares Northern Oil and Gas and HyperDynamics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Northern Oil and Gas	-33.17%	18.43%	7.14%
HyperDynamics	N/A	N/A	N/A

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Northern Oil and Gas	$2.48 billion	0.97	$38.76 million	($6.37)	-3.47
HyperDynamics	N/A	N/A	N/A	N/A	N/A

Northern Oil and Gas has higher revenue and earnings than HyperDynamics.

Insider & Institutional Ownership

98.8% of Northern Oil and Gas shares are held by institutional investors. 2.8% of Northern Oil and Gas shares are held by insiders. Comparatively, 5.9% of HyperDynamics shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Northern Oil and Gas beats HyperDynamics on 7 of the 10 factors compared between the two stocks.

About Northern Oil and Gas

Northern Oil and Gas, Inc., an independent energy company, engages in the acquisition, exploration, exploitation, development, and production of crude oil and natural gas properties in the United States. It primarily holds interests in the Williston Basin, the Appalachian Basin, and the Permian Basin in the United States. The company is based in Minnetonka, Minnesota.

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.