Matador Resources (NYSE: MTDR) and Sandridge Mississippian Trust I (NYSE:SDT) are both oils/energy companies, but which is the better business? We will compare the two companies based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.
Risk and Volatility
Matador Resources has a beta of 1.29, indicating that its stock price is 29% more volatile than the S&P 500. Comparatively, Sandridge Mississippian Trust I has a beta of 0.72, indicating that its stock price is 28% less volatile than the S&P 500.
Earnings & Valuation
This table compares Matador Resources and Sandridge Mississippian Trust I’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Matador Resources||$544.28 million||5.84||$125.86 million||$1.22||23.86|
|Sandridge Mississippian Trust I||$8.98 million||2.43||$6.09 million||$0.22||3.55|
Matador Resources has higher revenue and earnings than Sandridge Mississippian Trust I. Sandridge Mississippian Trust I is trading at a lower price-to-earnings ratio than Matador Resources, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and recommmendations for Matador Resources and Sandridge Mississippian Trust I, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Sandridge Mississippian Trust I||0||0||0||0||N/A|
Matador Resources presently has a consensus price target of $33.31, suggesting a potential upside of 14.44%. Given Matador Resources’ higher probable upside, equities research analysts clearly believe Matador Resources is more favorable than Sandridge Mississippian Trust I.
This table compares Matador Resources and Sandridge Mississippian Trust I’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Sandridge Mississippian Trust I||67.83%||19.89%||19.89%|
Sandridge Mississippian Trust I pays an annual dividend of $0.17 per share and has a dividend yield of 21.8%. Matador Resources does not pay a dividend. Sandridge Mississippian Trust I pays out 77.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Institutional & Insider Ownership
87.6% of Matador Resources shares are owned by institutional investors. Comparatively, 4.0% of Sandridge Mississippian Trust I shares are owned by institutional investors. 11.9% of Matador Resources shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Matador Resources beats Sandridge Mississippian Trust I on 11 of the 15 factors compared between the two stocks.
About Matador Resources
Matador Resources Company is an independent energy company engaged in the exploration, development, production and acquisition of oil and natural gas resources in the United States, with an emphasis on oil and natural gas shale and other unconventional plays. The Company’s segments include exploration and production, and midstream. The Company’s operations are focused primarily on the oil and liquids-rich portion of the Wolfcamp and Bone Spring plays in the Delaware Basin in Southeast New Mexico and West Texas. The Company also operates in the Eagle Ford shale play in South Texas and the Haynesville shale and Cotton Valley plays in Northwest Louisiana and East Texas. Additionally, the Company conducts midstream operations primarily, as of February 17, 2017, through its midstream joint venture, San Mateo Midstream, LLC (San Mateo or the Joint Venture).
About Sandridge Mississippian Trust I
SandRidge Mississippian Trust I is a statutory trust formed by and among SandRidge Energy, Inc. (SandRidge), The Bank of New York Mellon Trust Company, N.A., and The Corporation Trust Company. Sandridge offers various services to the Company, such as the operation of its development wells; remittance of net proceeds from the sale of associated production to the Company; administrative services, such as accounting, tax preparation, bookkeeping and informational services performed on behalf of the Company, and derivative agreement services related to production. The Company holds Royalty Interests in specified oil and natural gas properties located in the Mississippian formation in Alfalfa, Garfield, Grant and Woods counties in Oklahoma. The Mississippian formation is a carbonate hydrocarbon system located on the Anadarko Shelf. The top of the formation lies stratigraphically between the Pennsylvanian-aged Morrow formation and the Devonian-aged Woodford Shale formation.
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