Critical Contrast: Valaris (NYSE:VAL) vs. HighPeak Energy (NASDAQ:HPK)

Valaris (NYSE:VALGet Rating) and HighPeak Energy (NASDAQ:HPKGet Rating) are both mid-cap oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, institutional ownership, valuation, analyst recommendations and risk.

Insider & Institutional Ownership

81.8% of Valaris shares are owned by institutional investors. Comparatively, 7.0% of HighPeak Energy shares are owned by institutional investors. 89.6% of HighPeak Energy shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Valaris and HighPeak Energy, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Valaris 0 0 0 0 N/A
HighPeak Energy 0 0 2 0 3.00

Earnings & Valuation

This table compares Valaris and HighPeak Energy’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Valaris $1.23 billion 3.32 -$4.50 billion N/A N/A
HighPeak Energy $220.12 million 14.32 $55.56 million $0.54 60.28

HighPeak Energy has lower revenue, but higher earnings than Valaris.

Profitability

This table compares Valaris and HighPeak Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Valaris -365.14% -220.37% -74.18%
HighPeak Energy 25.24% 13.29% 9.95%

Summary

HighPeak Energy beats Valaris on 7 of the 9 factors compared between the two stocks.

About Valaris (Get Rating)

Valaris Limited offers offshore contract drilling services to oil and gas industry in Bermuda and internationally. The company owns an offshore drilling rig fleet of 56 rigs, which include 11 drillships, 4 dynamically positioned semisubmersible rigs, 1 moored semisubmersible rig, and 40 jackup rigs. It serves international, government-owned, and independent oil and gas companies in the Gulf of Mexico, the North Sea, the Middle East, West Africa, Australia, and Southeast Asia. The company was incorporated in 2009 and is based in Hamilton, Bermuda.

About HighPeak Energy (Get Rating)

HighPeak Energy, Inc., an independent oil and natural gas company, engages in the acquisition, exploration, development, and production of oil, natural gas, and natural gas liquids reserves in the Midland Basin in West Texas. As of December 31, 2021, the company had approximately 64,213 MBoe of proved reserves. HighPeak Energy, Inc. was incorporated in 2019 and is headquartered in Fort Worth, Texas.

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