Head-To-Head Survey: EQT (NYSE:EQT) vs. HKN (OTCMKTS:HKNI)

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

Insider and Institutional Ownership

90.8% of EQT shares are held by institutional investors. 0.1% of HKN shares are held by insiders. Comparatively, 0.7% of EQT shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
HKN	N/A	N/A	N/A
EQT	22.59%	6.88%	4.32%

Valuation and Earnings

This table compares HKN and EQT”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HKN	N/A	N/A	N/A	N/A	N/A
EQT	$5.27 billion	6.74	$230.58 million	$2.92	19.50

EQT has higher revenue and earnings than HKN.

Analyst Recommendations

This is a breakdown of current ratings and price targets for HKN and EQT, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HKN	0	0	0	0	0.00
EQT	1	5	18	1	2.76

EQT has a consensus price target of $63.77, suggesting a potential upside of 11.98%. Given EQT’s stronger consensus rating and higher possible upside, analysts plainly believe EQT is more favorable than HKN.

Summary

EQT beats HKN on 10 of the 10 factors compared between the two stocks.

About HKN

HKN, Inc. operates as an independent energy company. The company owns an oilfield emulsion breaking technology that purifies oilfield emulsions by breaking and separating the emulsions into oil, water, and solids. It also holds non-operated oil and gas leases and mineral interests in properties located in the Bakken and Niobrara shale oil plays; and rights to acreage in the Permian Basin of Texas. The company was founded in 1973 and is based in Southlake, Texas.

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.