Critical Analysis: Matador Resources (NYSE:MTDR) & Sky Petroleum (OTCMKTS:SKPI)

Matador Resources (NYSE:MTDR) and Sky Petroleum (OTCMKTS:SKPI) are both energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.

Insider and Institutional Ownership

92.0% of Matador Resources shares are owned by institutional investors. 5.8% of Matador Resources shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Matador Resources and Sky Petroleum’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Matador Resources	20.54%	12.36%	6.28%
Sky Petroleum	N/A	N/A	N/A

Earnings and Valuation

This table compares Matador Resources and Sky Petroleum”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Matador Resources	$3.70 billion	1.90	$759.22 million	$6.10	9.25
Sky Petroleum	N/A	N/A	N/A	N/A	N/A

Matador Resources has higher revenue and earnings than Sky Petroleum.

Analyst Ratings

This is a breakdown of current ratings and price targets for Matador Resources and Sky Petroleum, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Matador Resources	0	6	9	1	2.69
Sky Petroleum	0	0	0	0	0.00

Matador Resources presently has a consensus price target of $62.62, suggesting a potential upside of 11.02%. Given Matador Resources’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Matador Resources is more favorable than Sky Petroleum.

Summary

Matador Resources beats Sky Petroleum on 10 of the 10 factors compared between the two stocks.

About Matador Resources

Matador Resources Company, an independent energy company, engages in the exploration, development, production, and acquisition of oil and natural gas resources in the United States. It operates through two segments, Exploration and Production; and Midstream. The company primarily holds interests in the Wolfcamp and Bone Spring plays in the Delaware Basin in Southeast New Mexico and West Texas. It also operates the Eagle Ford shale play in South Texas; and the Haynesville shale and Cotton Valley plays in Northwest Louisiana. In addition, the company conducts midstream operations in support of its exploration, development, and production operations. Further, it provides natural gas processing and oil transportation services; and oil, natural gas, and produced water gathering services, as well as produced water disposal services to third parties. The company sells natural gas to unaffiliated independent marketing companies and unaffiliated midstream companies. The company was formerly known as Matador Holdco, Inc. and changed its name to Matador Resources Company in August 2011. Matador Resources Company was founded in 2003 and is headquartered in Dallas, Texas.

About Sky Petroleum

Sky Petroleum, Inc. acquires, explores, develops, and produces oil and natural gas properties of others under arrangements in which the company finances the costs in exchange for interests in the oil or natural gas revenue generated by the properties. It has a production sharing contract with the Ministry of Economy, Trade and Energy of Albania for three exploration blocks, including Four, Five, and Dumre blocks in the Republic of Albania. The company was formerly known as Seaside Explorations, Inc. and changed its name to Sky Petroleum, Inc. in March 2005. Sky Petroleum, Inc. was founded in 2002 and is based in Frisco, Texas.