Berry Petroleum (BRY) versus Matador Resources (MTDR) Financial Analysis

Berry Petroleum (NASDAQ:BRY) and Matador Resources (NYSE:MTDR) are both oils/energy companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.

Dividends

Berry Petroleum pays an annual dividend of $0.48 per share and has a dividend yield of 4.1%. Matador Resources does not pay a dividend.

Analyst Ratings

This is a breakdown of recent recommendations for Berry Petroleum and Matador Resources, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Berry Petroleum 0 2 8 0 2.80
Matador Resources 0 7 9 0 2.56

Berry Petroleum currently has a consensus target price of $17.71, indicating a potential upside of 53.11%. Matador Resources has a consensus target price of $34.40, indicating a potential upside of 92.50%. Given Matador Resources’ higher possible upside, analysts plainly believe Matador Resources is more favorable than Berry Petroleum.

Institutional and Insider Ownership

79.2% of Berry Petroleum shares are held by institutional investors. Comparatively, 88.1% of Matador Resources shares are held by institutional investors. 2.2% of Berry Petroleum shares are held by insiders. Comparatively, 11.1% of Matador Resources shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Berry Petroleum and Matador Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Berry Petroleum N/A N/A N/A
Matador Resources 22.69% 11.17% 6.64%

Valuation and Earnings

This table compares Berry Petroleum and Matador Resources’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Berry Petroleum N/A N/A N/A N/A N/A
Matador Resources $544.28 million 3.82 $125.86 million $0.72 24.82

Matador Resources has higher revenue and earnings than Berry Petroleum.

Summary

Matador Resources beats Berry Petroleum on 8 of the 10 factors compared between the two stocks.

Berry Petroleum Company Profile

Berry Petroleum Company, LLC., formerly Berry Petroleum Company, is an independent energy company. The Company is engaged in the production, development, exploitation, and acquisition of oil and natural gas. The Company’s principal reserves and producing properties are located in California (South Midway-Sunset (SMWSS)-Steam Floods, North Midway-Sunset (NMWSS)-Diatomite, NMWSS-New Steam Floods, Texas (Permian and E. Texas), Utah (Uinta) and Colorado (Piceance). The Company’s operations are conducted in the continental United States. In December 2013, Linn Energy LLC and Linn Co, LLC (Linn Co) announced the completion of the merger between LinnCo and Berry Petroleum Company (Berry), where LinnCo had acquired all of Berry’s interest.

Matador Resources Company Profile

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 in 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 and East Texas. In addition, the company conducts midstream operations in support of its exploration, development, and production operations; provides natural gas processing and oil transportation services; and offers oil, natural gas, and salt water gathering, as well as salt water disposal services to third parties. As of December 31, 2017, its estimated total proved oil and natural gas reserves were 152.8 million barrels of oil equivalent, including 86.7 million stock tank barrels of oil and 396.2 billion cubic feet of natural gas. 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.

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