Reviewing Riley Exploration Permian (NYSE:REPX) & Halcon Resources (OTCMKTS:HKRSQ)

Halcon Resources (OTCMKTS:HKRSQ) and Riley Exploration Permian (NYSE:REPX) are both small-cap oils/energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.

Profitability

This table compares Halcon Resources and Riley Exploration Permian’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%
Riley Exploration Permian	24.16%	25.64%	11.05%

Institutional & Insider Ownership

58.9% of Riley Exploration Permian shares are owned by institutional investors. 6.1% of Halcon Resources shares are owned by company insiders. Comparatively, 3.9% of Riley Exploration Permian shares are owned 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.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Halcon Resources and Riley Exploration Permian, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Halcon Resources	0	0	0	0	N/A
Riley Exploration Permian	0	0	1	0	3.00

Riley Exploration Permian has a consensus price target of $48.00, suggesting a potential upside of 81.06%. Given Riley Exploration Permian’s higher probable upside, analysts clearly believe Riley Exploration Permian is more favorable than Halcon Resources.

Valuation & Earnings

This table compares Halcon Resources and Riley Exploration Permian’s revenue, earnings per share (EPS) 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
Riley Exploration Permian	$375.05 million	1.52	$111.59 million	$4.92	5.39

Riley Exploration Permian has higher revenue and earnings than Halcon Resources.

Summary

Riley Exploration Permian beats Halcon Resources on 9 of the 10 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 Riley Exploration Permian

Riley Exploration Permian, Inc., an independent oil and natural gas company, engages in the acquisition, exploration, development, and production of oil, natural gas, and natural gas liquids in Texas and New Mexico. The company's activities are primarily focused on the Northwest Shelf and Yeso trend of the Permian Basin. Its acreage is primarily located on contiguous blocks in Yoakum County, Texas; and Eddy County, New Mexico. Riley Exploration Permian, Inc. is headquartered in Oklahoma City, Oklahoma.