Financial Contrast: EOG Resources (NYSE:EOG) and HKN (OTCMKTS:HKNI)

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

Institutional and Insider Ownership

89.9% of EOG Resources shares are held by institutional investors. 0.1% of HKN shares are held by insiders. Comparatively, 0.1% of EOG Resources shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HKN	N/A	N/A	N/A	N/A	N/A
EOG Resources	$22.58 billion	2.59	$6.40 billion	$10.04	10.71

EOG Resources has higher revenue and earnings than HKN.

Analyst Ratings

This is a summary of recent recommendations and price targets for HKN and EOG Resources, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HKN	0	0	0	0	0.00
EOG Resources	0	16	11	1	2.46

EOG Resources has a consensus target price of $140.33, suggesting a potential upside of 30.45%. Given EOG Resources’ stronger consensus rating and higher possible upside, analysts plainly believe EOG Resources is more favorable than HKN.

Profitability

This table compares HKN and EOG Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
HKN	N/A	N/A	N/A
EOG Resources	25.25%	20.51%	12.93%

Summary

EOG Resources beats HKN on 10 of the 10 factors compared between the two stocks.

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.

About EOG Resources

EOG Resources, Inc., together with its subsidiaries, explores for, develops, produces, and markets crude oil, natural gas liquids, and natural gas primarily in producing basins in the United States, the Republic of Trinidad and Tobago and internationally. The company was formerly known as Enron Oil & Gas Company. EOG Resources, Inc. was incorporated in 1985 and is headquartered in Houston, Texas.