Southwestern Energy (NYSE:SWN – Get Free Report) and Matador Resources (NYSE:MTDR – Get Free Report) are both mid-cap oils/energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, risk, dividends, analyst recommendations, institutional ownership and earnings.
Insider & Institutional Ownership
87.0% of Southwestern Energy shares are held by institutional investors. Comparatively, 92.0% of Matador Resources shares are held by institutional investors. 0.7% of Southwestern Energy shares are held by insiders. Comparatively, 6.0% of Matador Resources shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Volatility and Risk
Southwestern Energy has a beta of 1.12, suggesting that its stock price is 12% more volatile than the S&P 500. Comparatively, Matador Resources has a beta of 3.32, suggesting that its stock price is 232% more volatile than the S&P 500.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Southwestern Energy | 1 | 9 | 4 | 0 | 2.21 |
| Matador Resources | 0 | 0 | 10 | 0 | 3.00 |
Southwestern Energy presently has a consensus target price of $8.11, suggesting a potential upside of 11.51%. Matador Resources has a consensus target price of $72.50, suggesting a potential upside of 10.41%. Given Southwestern Energy’s higher probable upside, equities research analysts plainly believe Southwestern Energy is more favorable than Matador Resources.
Earnings and Valuation
This table compares Southwestern Energy and Matador Resources’ gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Southwestern Energy | $6.52 billion | 1.23 | $1.56 billion | $1.41 | 5.16 |
| Matador Resources | $2.81 billion | 2.80 | $846.07 million | $7.05 | 9.31 |
Southwestern Energy has higher revenue and earnings than Matador Resources. Southwestern Energy is trading at a lower price-to-earnings ratio than Matador Resources, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Southwestern Energy and Matador Resources’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Southwestern Energy | 23.87% | 11.74% | 5.81% |
| Matador Resources | 30.14% | 21.54% | 11.56% |
Summary
Matador Resources beats Southwestern Energy on 11 of the 14 factors compared between the two stocks.
About Southwestern Energy
Southwestern Energy Company, an independent energy company, engages in the exploration, development, and production of natural gas, oil, and natural gas liquids (NGLs) in the United States. It operates through two segments, Exploration and Production, and Marketing. The company focuses on the development of unconventional natural gas and oil reservoirs located in Pennsylvania, West Virginia, Ohio, and Louisiana. It also engages in the marketing and transportation of natural gas, oil, and NGLs. It serves LNG exporters, energy companies, utilities, and industrial purchasers of natural gas. Southwestern Energy Company was incorporated in 1929 and is headquartered in Spring, Texas.
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.
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