Financial Analysis: Viper Energy (NASDAQ:VNOM) vs. Hyperdynamics (OTCMKTS:HDYNQ)

Viper Energy (NASDAQ:VNOM) and Hyperdynamics (OTCMKTS:HDYNQ) are both energy companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, analyst recommendations, valuation, risk and dividends.

Institutional & Insider Ownership

87.7% of Viper Energy shares are held by institutional investors. 0.3% of Viper Energy shares are held by insiders. Comparatively, 5.9% of Hyperdynamics shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Viper Energy 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
Viper Energy	$859.75 million	10.96	$200.09 million	$3.67	12.05
Hyperdynamics	N/A	N/A	N/A	N/A	N/A

Viper Energy has higher revenue and earnings than Hyperdynamics.

Profitability

This table compares Viper Energy and Hyperdynamics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Viper Energy	24.65%	6.72%	4.98%
Hyperdynamics	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Viper Energy and Hyperdynamics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Viper Energy	0	0	12	0	3.00
Hyperdynamics	0	0	0	0	0.00

Viper Energy presently has a consensus price target of $59.00, suggesting a potential upside of 33.39%. Given Viper Energy’s stronger consensus rating and higher probable upside, research analysts clearly believe Viper Energy is more favorable than Hyperdynamics.

Risk and Volatility

Viper Energy has a beta of 1.69, suggesting that its stock price is 69% more volatile than the S&P 500. Comparatively, Hyperdynamics has a beta of 2.51, suggesting that its stock price is 151% more volatile than the S&P 500.

Summary

Viper Energy beats Hyperdynamics on 8 of the 10 factors compared between the two stocks.

About Viper Energy

Viper Energy, Inc. engages in the acquisition of oil and natural gas properties. It owns, acquires, and exploits oil and natural gas properties in North America. The company was founded on February 27, 2014 and is headquartered in Midland, TX.

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.