Reviewing EQT (NYSE:EQT) and HighPeak Energy (NASDAQ:HPK)

EQT (NYSE:EQT) and HighPeak Energy (NASDAQ:HPK) are both energy companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, valuation, analyst recommendations, profitability, earnings, dividends and risk.

Risk & Volatility

EQT has a beta of 0.59, suggesting that its share price is 41% less volatile than the S&P 500. Comparatively, HighPeak Energy has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500.

Dividends

EQT pays an annual dividend of $0.63 per share and has a dividend yield of 1.2%. HighPeak Energy pays an annual dividend of $0.16 per share and has a dividend yield of 2.1%. EQT pays out 34.1% of its earnings in the form of a dividend. HighPeak Energy pays out 18.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. EQT has raised its dividend for 3 consecutive years and HighPeak Energy has raised its dividend for 1 consecutive years. HighPeak Energy is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
EQT	15.87%	6.24%	3.70%
HighPeak Energy	12.59%	7.10%	3.75%

Valuation & Earnings

This table compares EQT and HighPeak Energy”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EQT	$5.27 billion	6.14	$230.58 million	$1.85	28.06
HighPeak Energy	$1.07 billion	0.91	$95.07 million	$0.86	8.94

EQT has higher revenue and earnings than HighPeak Energy. HighPeak Energy is trading at a lower price-to-earnings ratio than EQT, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

90.8% of EQT shares are owned by institutional investors. Comparatively, 24.1% of HighPeak Energy shares are owned by institutional investors. 0.7% of EQT shares are owned by insiders. Comparatively, 78.9% of HighPeak Energy shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for EQT and HighPeak Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EQT	1	5	15	0	2.67
HighPeak Energy	1	1	0	0	1.50

EQT currently has a consensus price target of $62.1429, suggesting a potential upside of 19.70%. HighPeak Energy has a consensus price target of $11.50, suggesting a potential upside of 49.54%. Given HighPeak Energy’s higher probable upside, analysts clearly believe HighPeak Energy is more favorable than EQT.

Summary

EQT beats HighPeak Energy on 10 of the 17 factors compared between the two stocks.

About EQT

EQT Corporation operates as a natural gas production company in the United States. The company sells natural gas and natural gas liquids to marketers, utilities, and industrial customers through pipelines located in the Appalachian Basin. It also offers marketing services and contractual pipeline capacity management services. The company was formerly known as Equitable Resources Inc. and changed its name to EQT Corporation in February 2009. EQT Corporation was founded in 1878 and is headquartered in Pittsburgh, Pennsylvania.

About HighPeak Energy

HighPeak Energy, Inc., an independent oil and natural gas company, engages in the exploration, development, and production of crude oil, natural gas, and natural gas liquids reserves in the Permian Basin in West Texas and Eastern New Mexico. The company was incorporated in 2019 and is headquartered in Fort Worth, Texas.