Critical Survey: Halcon Resources (OTCMKTS:HKRSQ) & Ovintiv (NYSE:OVV)

Halcon Resources (OTCMKTS:HKRSQ) and Ovintiv (NYSE:OVV) are both oils/energy companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, valuation, analyst recommendations, dividends and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Halcon Resources	-324.96%	-238.22%	-73.12%
Ovintiv	20.15%	17.87%	9.35%

Analyst Recommendations

This is a summary of current ratings for Halcon Resources and Ovintiv, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Halcon Resources	0	0	0	0	0.00
Ovintiv	0	5	12	1	2.78

Ovintiv has a consensus target price of $56.59, suggesting a potential upside of 48.88%. Given Ovintiv’s stronger consensus rating and higher probable upside, analysts clearly believe Ovintiv is more favorable than Halcon Resources.

Institutional & Insider Ownership

83.8% of Ovintiv shares are owned by institutional investors. 6.1% of Halcon Resources shares are owned by insiders. Comparatively, 1.7% of Ovintiv shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Halcon Resources and Ovintiv”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Halcon Resources	$224.68 million	0.05	-$1.17 billion	N/A	N/A
Ovintiv	$10.13 billion	0.98	$2.09 billion	$7.54	5.04

Ovintiv has higher revenue and earnings than Halcon Resources.

Summary

Ovintiv beats Halcon Resources on 11 of the 12 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 December 31, 2018, the company held interests in 56,900 net acres in the Delaware Basin, located in Pecos, Reeves, Ward, and Winkler Counties, Texas. As of December 31, 2018, it had estimated proved reserves of approximately 85.2 million barrels of oil equivalent comprising 50.7 million barrels of crude oil, 17.1 million barrels of natural gas liquids, and 104.7 billion 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. On August 7, 2019, Halcón Resources Corporation along with its affiliates filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for Southern District of Texas.

About Ovintiv

Ovintiv Inc., together with its subsidiaries, explores, develops, produces, and markets natural gas, oil, and natural gas liquids in the United States and Canada. The company operates through USA Operations, Canadian Operations, and Market Optimization segments. Its principal assets include Permian in west Texas and Anadarko in west-central Oklahoma; and Montney in northeast British Columbia and northwest Alberta. In addition, the company's upstream assets comprise Bakken in northwest North Dakota, and Uinta in central Utah; and Horn River in northeast British Columbia. The company was formerly known as Encana Corporation and changed its name to Ovintiv Inc. in January 2020. Ovintiv Inc. was incorporated in 2020 and is based in Denver, Colorado.