Matador Resources (NYSE:MTDR) & Callon Petroleum (NYSE:CPE) Head to Head Review

Matador Resources (NYSE:MTDRGet Rating) and Callon Petroleum (NYSE:CPEGet Rating) are both mid-cap oils/energy companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, risk, profitability and earnings.

Volatility & Risk

Matador Resources has a beta of 3.83, indicating that its stock price is 283% more volatile than the S&P 500. Comparatively, Callon Petroleum has a beta of 2.72, indicating that its stock price is 172% more volatile than the S&P 500.

Valuation and Earnings

This table compares Matador Resources and Callon Petroleum’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Matador Resources $1.66 billion 3.73 $584.97 million $6.13 8.56
Callon Petroleum $2.05 billion 1.50 $365.15 million $8.82 5.67

Matador Resources has higher earnings, but lower revenue than Callon Petroleum. Callon Petroleum 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 Matador Resources and Callon Petroleum’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Matador Resources 37.28% 34.63% 16.79%
Callon Petroleum 19.71% 42.41% 11.30%

Insider & Institutional Ownership

87.8% of Matador Resources shares are held by institutional investors. Comparatively, 95.7% of Callon Petroleum shares are held by institutional investors. 6.8% of Matador Resources shares are held by insiders. Comparatively, 2.1% of Callon Petroleum shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and target prices for Matador Resources and Callon Petroleum, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Matador Resources 0 1 10 0 2.91
Callon Petroleum 1 4 4 0 2.33

Matador Resources presently has a consensus target price of $55.90, suggesting a potential upside of 6.58%. Callon Petroleum has a consensus target price of $74.63, suggesting a potential upside of 49.13%. Given Callon Petroleum’s higher probable upside, analysts clearly believe Callon Petroleum is more favorable than Matador Resources.

Summary

Matador Resources beats Callon Petroleum on 9 of the 14 factors compared between the two stocks.

Matador Resources Company Profile (Get Rating)

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; provides natural gas processing and oil transportation services; and offers oil, natural gas, and produced water gathering services, as well as produced water disposal services to third parties. As of December 31, 2021, its estimated total proved oil and natural gas reserves were 323.4 million barrels of oil equivalent, including 181.3 million stock tank barrels of oil and 852.5 billion cubic feet of natural gas. 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.

Callon Petroleum Company Profile (Get Rating)

Callon Petroleum Company, an independent oil and natural gas company, focuses on the acquisition, exploration, and development of oil and natural gas properties in Permian Basin in West Texas. As of December 31, 2021, its estimated net proved reserves totaled approximately 484.6 million barrel of oil equivalent, including 290.3 MMBbls oil, 577.3 Bcf of natural gas, and 98.1 MMBbls of natural gas liquids. The company was founded in 1950 and is headquartered in Houston, Texas.

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