Matador Resources (NYSE:MTDR) and ERHC Energy (OTCMKTS:ERHE) Financial Analysis

ERHC Energy (OTCMKTS:ERHE) and Matador Resources (NYSE:MTDR) are both energy companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.

Analyst Ratings

This is a summary of recent ratings and recommmendations for ERHC Energy and Matador Resources, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ERHC Energy	0	0	0	0	0.00
Matador Resources	0	3	12	1	2.88

Matador Resources has a consensus target price of $63.57, suggesting a potential upside of 53.54%. Given Matador Resources’ stronger consensus rating and higher probable upside, analysts plainly believe Matador Resources is more favorable than ERHC Energy.

Profitability

This table compares ERHC Energy and Matador Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ERHC Energy	N/A	N/A	N/A
Matador Resources	20.46%	14.80%	7.48%

Insider and Institutional Ownership

92.0% of Matador Resources shares are owned by institutional investors. 4.9% of ERHC Energy shares are owned by insiders. Comparatively, 5.8% of Matador Resources shares are owned by 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.

Earnings & Valuation

This table compares ERHC Energy and Matador Resources”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ERHC Energy	N/A	N/A	N/A	N/A	N/A
Matador Resources	$3.83 billion	1.35	$885.32 million	$6.26	6.61

Matador Resources has higher revenue and earnings than ERHC Energy.

Volatility and Risk

ERHC Energy has a beta of -5.97, indicating that its share price is 697% less volatile than the S&P 500. Comparatively, Matador Resources has a beta of 1.35, indicating that its share price is 35% more volatile than the S&P 500.

Summary

Matador Resources beats ERHC Energy on 11 of the 11 factors compared between the two stocks.

About ERHC Energy

ERHC Energy Inc. engages in the exploration and exploitation of oil and gas resources in Africa. Its principal assets include the rights to working interests in exploration acreage in the Republic of Kenya; the Republic of Chad; the Joint Development Zone between the Democratic Republic of Sao Tome and Principe; the Federal Republic of Nigeria; and the economic zone of Sao Tome. The company was founded in 1986 and is based in Houston, 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.