Reviewing Carbon Energy (OTCMKTS:CRBO) and Matador Resources (NYSE:MTDR)

Carbon Energy (OTCMKTS:CRBO) 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 dividends, profitability, analyst recommendations, institutional ownership, earnings, risk and valuation.

Profitability

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

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Carbon Energy and Matador Resources, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Carbon Energy	0	0	0	0	0.00
Matador Resources	0	4	10	1	2.80

Matador Resources has a consensus target price of $57.82, suggesting a potential upside of 20.91%. Given Matador Resources’ stronger consensus rating and higher possible upside, analysts clearly believe Matador Resources is more favorable than Carbon Energy.

Earnings & Valuation

This table compares Carbon Energy and Matador Resources”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Carbon Energy	N/A	N/A	N/A	N/A	N/A
Matador Resources	$3.83 billion	1.55	$885.32 million	$6.26	7.64

Matador Resources has higher revenue and earnings than Carbon Energy.

Volatility and Risk

Carbon Energy has a beta of -1.99, indicating that its share price is 299% less volatile than the S&P 500. Comparatively, Matador Resources has a beta of 1.14, indicating that its share price is 14% more volatile than the S&P 500.

Institutional & Insider Ownership

92.0% of Matador Resources shares are held by institutional investors. 7.1% of Carbon Energy shares are held by insiders. Comparatively, 5.8% of Matador Resources shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Matador Resources beats Carbon Energy on 10 of the 11 factors compared between the two stocks.

About Carbon Energy

Carbon Energy Corporation, an independent oil and natural gas company, engages in the acquisition, exploration, development, and production of oil, natural gas, and natural gas liquids properties in the United States. It focuses on conventional and unconventional reservoirs, including shale, tight sand, and coalbed methane located in the Appalachian, Illinois, and Ventura Basins. It owns working interests and royalty interests in wells located in California, Illinois, Indiana, Kentucky, Ohio, Tennessee, Virginia, and West Virginia, as well as had leasehold positions. The company was formerly known as Carbon Natural Gas Company and changed its name to Carbon Energy Corporation in June 2018. Carbon Energy Corporation was founded in 2007 and is based in Denver, Colorado.

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.