Critical Review: Northern Oil and Gas (NYSE:NOG) & HyperDynamics (OTCMKTS:HDYNQ)

HyperDynamics (OTCMKTS:HDYNQ) and Northern Oil and Gas (NYSE:NOG) are both energy companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, risk, valuation, profitability, earnings, analyst recommendations and dividends.

Risk and Volatility

HyperDynamics has a beta of 5.38, suggesting that its share price is 438% more volatile than the S&P 500. Comparatively, Northern Oil and Gas has a beta of 0.69, suggesting that its share price is 31% less volatile than the S&P 500.

Insider & Institutional Ownership

98.8% of Northern Oil and Gas shares are held by institutional investors. 5.9% of HyperDynamics shares are held by company insiders. Comparatively, 2.8% of Northern Oil and Gas shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares HyperDynamics and Northern Oil and Gas’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
HyperDynamics	N/A	N/A	N/A
Northern Oil and Gas	-33.17%	18.43%	7.14%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for HyperDynamics and Northern Oil and Gas, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HyperDynamics	0	0	0	0	0.00
Northern Oil and Gas	2	4	4	0	2.20

Northern Oil and Gas has a consensus price target of $31.62, suggesting a potential upside of 49.58%. Given Northern Oil and Gas’ stronger consensus rating and higher probable upside, analysts plainly believe Northern Oil and Gas is more favorable than HyperDynamics.

Earnings & Valuation

This table compares HyperDynamics and Northern Oil and Gas”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HyperDynamics	N/A	N/A	N/A	N/A	N/A
Northern Oil and Gas	$2.48 billion	0.93	$38.76 million	($6.37)	-3.32

Northern Oil and Gas has higher revenue and earnings than HyperDynamics.

Summary

Northern Oil and Gas beats HyperDynamics on 7 of the 10 factors compared between the two stocks.

About HyperDynamics

Hyperdynamics Corporation, together with its subsidiaries, operates as an independent oil and gas exploration company. It engages in the acquisition, exploration, and development of oil and natural gas properties in the Republic of Guinea, Northwest Africa. The company owns a 100% interest in a concession that covers an area of approximately 5,000 square miles in offshore Guinea. Hyperdynamics Corporation was founded in 1983 and is headquartered in Houston, Texas.

About Northern Oil and Gas

Northern Oil and Gas, Inc., an independent energy company, engages in the acquisition, exploration, exploitation, development, and production of crude oil and natural gas properties in the United States. It primarily holds interests in the Williston Basin, the Appalachian Basin, and the Permian Basin in the United States. The company is based in Minnetonka, Minnesota.