Analyzing EQT (NYSE:EQT) and HKN (OTCMKTS:HKNI)

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

Profitability

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

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

Institutional & Insider Ownership

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EQT	1	5	19	0	2.72
HKN	0	0	0	0	0.00

EQT currently has a consensus target price of $63.77, suggesting a potential upside of 13.64%. Given EQT’s stronger consensus rating and higher probable upside, research analysts clearly believe EQT is more favorable than HKN.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EQT	$5.27 billion	6.64	$230.58 million	$2.92	19.22
HKN	N/A	N/A	N/A	N/A	N/A

EQT has higher revenue and earnings than HKN.

Summary

EQT beats HKN on 9 of the 9 factors compared between the two stocks.

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.

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.