Financial Comparison: Resolute Energy (REN) & WildHorse Resource Development (WRD)

Resolute Energy (NYSE: REN) and WildHorse Resource Development (NYSE:WRD) are both oils/energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, earnings, profitability, institutional ownership, valuation and risk.

Risk & Volatility

Resolute Energy has a beta of 3.22, indicating that its stock price is 222% more volatile than the S&P 500. Comparatively, WildHorse Resource Development has a beta of -0.23, indicating that its stock price is 123% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Resolute Energy and WildHorse Resource Development, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Resolute Energy 0 5 4 0 2.44
WildHorse Resource Development 0 2 7 0 2.78

Resolute Energy presently has a consensus target price of $43.63, suggesting a potential upside of 35.31%. WildHorse Resource Development has a consensus target price of $23.22, suggesting a potential downside of 6.55%. Given Resolute Energy’s higher probable upside, equities analysts clearly believe Resolute Energy is more favorable than WildHorse Resource Development.

Profitability

This table compares Resolute Energy and WildHorse Resource Development’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Resolute Energy -1.23% -25.97% 2.80%
WildHorse Resource Development 11.68% 4.31% 2.08%

Valuation and Earnings

This table compares Resolute Energy and WildHorse Resource Development’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Resolute Energy $303.48 million 2.39 -$1.23 million $0.06 537.33
WildHorse Resource Development $427.19 million 5.89 $49.88 million $0.43 57.79

WildHorse Resource Development has higher revenue and earnings than Resolute Energy. WildHorse Resource Development is trading at a lower price-to-earnings ratio than Resolute Energy, indicating that it is currently the more affordable of the two stocks.

Summary

WildHorse Resource Development beats Resolute Energy on 8 of the 12 factors compared between the two stocks.

Resolute Energy Company Profile

Resolute Energy Corporation, an independent oil and gas company, engages in the acquisition, exploitation, exploration for, and development of oil and gas properties in the United States. Its principal project area is located in the Delaware Basin portion of the Permian Basin, Reeves County. As of December 31, 2017, it had interests in approximately 27,100 gross acres located in the Permian Basin of Texas; and its estimated net proved reserves were approximately 53.4 million barrels of oil equivalent. Resolute Energy Corporation was founded in 2004 and is based in Denver, Colorado.

WildHorse Resource Development Company Profile

WildHorse Resource Development Corporation, an independent oil and natural gas company, focuses on the acquisition, exploitation, development, and production of oil, natural gas, and natural gas liquid resources. The company primarily holds interests in the Eagle Ford Shale in East Texas and the overpressured Cotton Valley formation in North Louisiana. As of December 31, 2017, it had a total leasehold position of approximately 387,091 net acres in the Eagle Ford Shale and 90,062 net acres in overpressured Cotton Valley formation, as well as 454.3 million barrels of oil equivalent of total proved reserves. The company was founded in 2013 and is headquartered in Houston, Texas.

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