Head to Head Comparison: Cimarex Energy (XEC) & Harvest Natural Resources (NYSE:HNR)

Cimarex Energy (NYSE: XEC) and Harvest Natural Resources (NYSE:HNR) are both oils/energy companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, risk, analyst recommendations, earnings, institutional ownership, valuation and dividends.

Dividends

Cimarex Energy pays an annual dividend of $0.32 per share and has a dividend yield of 0.3%. Harvest Natural Resources does not pay a dividend. Cimarex Energy pays out 8.5% of its earnings in the form of a dividend.

Institutional and Insider Ownership

92.3% of Cimarex Energy shares are owned by institutional investors. Comparatively, 53.9% of Harvest Natural Resources shares are owned by institutional investors. 1.7% of Cimarex Energy shares are owned by company insiders. Comparatively, 27.2% of Harvest Natural Resources shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Cimarex Energy and Harvest Natural Resources’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Cimarex Energy $1.26 billion 7.59 -$408.80 million $3.76 26.65
Harvest Natural Resources N/A N/A N/A ($1.53) N/A

Harvest Natural Resources has lower revenue, but higher earnings than Cimarex Energy. Harvest Natural Resources is trading at a lower price-to-earnings ratio than Cimarex Energy, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Cimarex Energy and Harvest Natural Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cimarex Energy 20.45% 16.11% 8.04%
Harvest Natural Resources N/A -25.98% -17.70%

Analyst Recommendations

This is a summary of current ratings and price targets for Cimarex Energy and Harvest Natural Resources, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cimarex Energy 0 7 17 0 2.71
Harvest Natural Resources 0 0 0 0 N/A

Cimarex Energy currently has a consensus price target of $141.75, suggesting a potential upside of 41.48%.

Summary

Cimarex Energy beats Harvest Natural Resources on 9 of the 11 factors compared between the two stocks.

About Cimarex Energy

Cimarex Energy Co. is an independent oil and gas exploration and production company. The Company operates in exploration and production (E&P) segment. Its operations are located in Oklahoma, Texas and New Mexico. Its E&P activities take place primarily in two areas: the Permian Basin and the Mid-Continent region. Its Permian Basin region encompasses west Texas and southeast New Mexico. Its Mid-Continent region consists of Oklahoma and the Texas Panhandle. As of fiscal year ended December 31, 2016 (fiscal 2016), its activities in the Mid-Continent were focused in the Woodford shale and the Meramec horizon, both in Oklahoma. During fiscal 2016, production from the Mid-Continent averaged 457 millions of cubic feet equivalent (MMcfe) per day, or 47% of total company production. All of the Company’s oil and gas assets are located in the United States. As of December 31, 2016, 63% of its total proved reserves were located in the Mid-Continent region and 37% were in the Permian Basin.

About Harvest Natural Resources

Harvest Natural Resources, Inc. (Harvest) is in the process of dissolution and winding up. The Company was previously a petroleum exploration and production company. The Company was engaged in acquiring exploration, development and producing properties in geological basins active hydrocarbon systems.

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