Head-To-Head Review: Halcon Resources (HK) and Bonanza Creek Energy (BCEI)

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Halcon Resources (NYSE: BCEI) and Bonanza Creek Energy (NYSE:BCEI) are both small-cap oils/energy companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, earnings and analyst recommendations.

Insider and Institutional Ownership

93.3% of Halcon Resources shares are owned by institutional investors. 3.7% of Halcon Resources shares are owned by company insiders. Comparatively, 0.9% of Bonanza Creek Energy shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and target prices for Halcon Resources and Bonanza Creek Energy, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Halcon Resources 0 2 5 0 2.71
Bonanza Creek Energy 0 2 2 0 2.50

Halcon Resources presently has a consensus target price of $8.00, suggesting a potential upside of 102.53%. Bonanza Creek Energy has a consensus target price of $41.67, suggesting a potential upside of 30.74%. Given Halcon Resources’ stronger consensus rating and higher possible upside, research analysts plainly believe Halcon Resources is more favorable than Bonanza Creek Energy.

Earnings and Valuation

This table compares Halcon Resources and Bonanza Creek Energy’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Halcon Resources $377.96 million 1.68 $535.68 million ($0.15) -26.33
Bonanza Creek Energy $192.12 million 3.41 -$2.36 million N/A N/A

Halcon Resources has higher revenue and earnings than Bonanza Creek Energy.

Profitability

This table compares Halcon Resources and Bonanza Creek Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Halcon Resources 135.43% -1.03% -0.60%
Bonanza Creek Energy 7.47% 9.73% 7.92%

Volatility & Risk

Halcon Resources has a beta of 4.12, indicating that its share price is 312% more volatile than the S&P 500. Comparatively, Bonanza Creek Energy has a beta of 1.57, indicating that its share price is 57% more volatile than the S&P 500.

Summary

Halcon Resources beats Bonanza Creek Energy on 9 of the 13 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 February 28, 2018, the company held interests in 21,679 net acres in the Monument Draw area of the Delaware Basin, located in Pecos and Reeves Counties, Texas; and 27,035 net acres in the Hackberry Draw area of the Delaware Basin, located in Pecos and Reeves Counties, Texas. As of December 31, 2017, it had estimated proved reserves of approximately 51.1 million barrels of oil equivalent comprising 34.1 million barrels of crude oil, 9.2 million barrels of natural gas liquids, and 46.7 0billion 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.

About Bonanza Creek Energy

Bonanza Creek Energy, Inc. engages in the exploration, development, and production of onshore oil and related liquids-rich natural gas in the United States. The company's oil and liquids-weighted assets are located primarily in the Wattenberg Field in Colorado; and the Dorcheat Macedonia Field in southern Arkansas. It also owns and operates oil-producing assets in the McKamie Patton Field in southern Arkansas. As of December 31, 2017, the company had proved reserves of 102.0 MMBoe. Bonanza Creek Energy, Inc. was founded in 2010 and is headquartered in Denver, Colorado.

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