Comparing HKN (OTCMKTS:HKNI) and Devon Energy (NYSE:DVN)

Devon Energy (NYSE:DVN) and HKN (OTCMKTS:HKNI) are both oils/energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, risk, institutional ownership, earnings and analyst recommendations.

Earnings & Valuation

This table compares Devon Energy and HKN’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Devon Energy	$15.26 billion	2.22	$3.75 billion	$5.83	9.16
HKN	N/A	N/A	N/A	N/A	N/A

Devon Energy has higher revenue and earnings than HKN.

Institutional & Insider Ownership

69.7% of Devon Energy shares are held by institutional investors. 0.6% of Devon Energy shares are held by company insiders. Comparatively, 0.1% of HKN shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Devon Energy and HKN’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Devon Energy	24.56%	31.72%	15.36%
HKN	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of current ratings and target prices for Devon Energy and HKN, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Devon Energy	0	4	13	0	2.76
HKN	0	0	0	0	N/A

Devon Energy currently has a consensus price target of $57.83, suggesting a potential upside of 8.26%. Given Devon Energy’s higher probable upside, research analysts clearly believe Devon Energy is more favorable than HKN.

Summary

Devon Energy beats HKN on 8 of the 8 factors compared between the two stocks.

About Devon Energy

Devon Energy Corporation, an independent energy company, engages in the exploration, development, and production of oil, natural gas, and natural gas liquids in the United States. It operates in Delaware, Eagle Ford, Anadarko, Williston, and Powder River Basins. The company was founded in 1971 and is headquartered in Oklahoma City, Oklahoma.

About HKN

HKN, Inc. operates as an independent energy company. The company owns an oilfield emulsion breaking technology that purifies oilfield emulsions by breaking and separating the emulsions into oil, water, and solids. It also holds non-operated oil and gas leases and mineral interests in properties located in the Bakken and Niobrara shale oil plays; and rights to acreage in the Permian Basin of Texas. The company was founded in 1973 and is based in Southlake, Texas.