Reviewing Cimarex Energy (NYSE:XEC) & HighPoint Resources (NYSE:HPR)

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

Analyst Recommendations

This is a breakdown of current recommendations for HighPoint Resources and Cimarex Energy, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HighPoint Resources 0 2 2 0 2.50
Cimarex Energy 1 9 9 0 2.42

HighPoint Resources currently has a consensus price target of $3.75, suggesting a potential upside of 188.46%. Cimarex Energy has a consensus price target of $65.31, suggesting a potential upside of 26.48%. Given HighPoint Resources’ stronger consensus rating and higher probable upside, research analysts clearly believe HighPoint Resources is more favorable than Cimarex Energy.

Institutional & Insider Ownership

93.2% of HighPoint Resources shares are held by institutional investors. Comparatively, 97.8% of Cimarex Energy shares are held by institutional investors. 1.0% of HighPoint Resources shares are held by company insiders. Comparatively, 1.7% of Cimarex Energy shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
HighPoint Resources 29.34% -2.78% -1.42%
Cimarex Energy 21.13% 13.02% 6.70%

Volatility & Risk

HighPoint Resources has a beta of 3.45, indicating that its share price is 245% more volatile than the S&P 500. Comparatively, Cimarex Energy has a beta of 1.41, indicating that its share price is 41% more volatile than the S&P 500.

Earnings & Valuation

This table compares HighPoint Resources and Cimarex Energy’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
HighPoint Resources $453.00 million 0.61 $121.22 million ($0.03) -43.33
Cimarex Energy $2.34 billion 2.25 $791.85 million $7.40 6.98

Cimarex Energy has higher revenue and earnings than HighPoint Resources. HighPoint 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.

Summary

Cimarex Energy beats HighPoint Resources on 10 of the 14 factors compared between the two stocks.

About HighPoint Resources

HighPoint Resources Corporation, together with its subsidiaries, engages in the exploration, development, and production of oil, natural gas, and natural gas liquids in the United States. It primarily holds interests in the Denver Julesburg Basin in Colorado's eastern plains and parts of southeastern Wyoming. The company is headquartered in Denver, Colorado.

About Cimarex Energy

Cimarex Energy Co. operates as an independent oil and gas exploration and production company primarily in Oklahoma, Texas, and New Mexico. As of December 31, 2018, it had a total proved reserves of 591.2 million barrels of oil equivalent, consisting of 1.59 trillion cubic feet of natural gas; 146.5 million barrels (MMBbls) of oil; and 179.4 MMBbls of natural gas liquids primarily located in the Permian Basin and Mid-Continent regions. The company also owned interests in 2,902 net productive oil and gas wells. Cimarex Energy Co. was founded in 2002 and is headquartered in Denver, Colorado.

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