Reviewing Riley Exploration Permian (NYSE:REPX) & Hempstract (OTCMKTS:HPST)

Riley Exploration Permian (NYSE:REPX) and Hempstract (OTCMKTS:HPST) are both small-cap energy companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, profitability, earnings, dividends, institutional ownership, analyst recommendations and risk.

Institutional & Insider Ownership

58.9% of Riley Exploration Permian shares are held by institutional investors. 4.7% of Riley Exploration Permian shares are held by insiders. Comparatively, 28.1% of Hempstract shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Riley Exploration Permian and Hempstract”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Riley Exploration Permian	$392.89 million	1.62	$111.59 million	$4.53	6.39
Hempstract	N/A	N/A	N/A	N/A	N/A

Riley Exploration Permian has higher revenue and earnings than Hempstract.

Volatility & Risk

Riley Exploration Permian has a beta of 1.49, meaning that its stock price is 49% more volatile than the S&P 500. Comparatively, Hempstract has a beta of 1.78, meaning that its stock price is 78% more volatile than the S&P 500.

Profitability

This table compares Riley Exploration Permian and Hempstract’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Riley Exploration Permian	28.48%	23.82%	11.31%
Hempstract	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of current ratings and target prices for Riley Exploration Permian and Hempstract, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Riley Exploration Permian	0	0	1	0	3.00
Hempstract	0	0	0	0	0.00

Riley Exploration Permian currently has a consensus target price of $47.00, indicating a potential upside of 62.46%. Given Riley Exploration Permian’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Riley Exploration Permian is more favorable than Hempstract.

Summary

Riley Exploration Permian beats Hempstract on 8 of the 10 factors compared between the two stocks.

About Riley Exploration Permian

Riley Exploration Permian, Inc., an independent oil and natural gas company, engages in the acquisition, exploration, development, and production of oil, natural gas, and natural gas liquids in Texas and New Mexico. The company's activities are primarily focused on the Northwest Shelf and Yeso trend of the Permian Basin. Its acreage is primarily located on contiguous blocks in Yoakum County, Texas; and Eddy County, New Mexico. Riley Exploration Permian, Inc. is headquartered in Oklahoma City, Oklahoma.

About Hempstract

Hempstract, Inc. produces and sells cannabidiol (CBD) and cannabigerol solutions in the United States. It offers CBD isolate powder and distillate oil. The company was formerly known as Riverdale Oil and Gas Corporation and changed its name to Hempstract, Inc. in November 2020. Hempstract, Inc. is based in Warden, Washington.