Critical Review: Viper Energy (NASDAQ:VNOM) & Hyperdynamics (OTCMKTS:HDYNQ)

Viper Energy (NASDAQ:VNOM) and Hyperdynamics (OTCMKTS:HDYNQ) are both oils/energy companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.

Insider and Institutional Ownership

87.7% of Viper Energy shares are held by institutional investors. 0.3% of Viper Energy shares are held by company insiders. Comparatively, 5.9% of Hyperdynamics shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Viper Energy has a beta of 1.69, suggesting that its share price is 69% more volatile than the S&P 500. Comparatively, Hyperdynamics has a beta of 2.51, suggesting that its share price is 151% more volatile than the S&P 500.

Profitability

This table compares Viper Energy and Hyperdynamics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Viper Energy	24.65%	6.72%	4.98%
Hyperdynamics	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Viper Energy and Hyperdynamics, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Viper Energy	0	0	12	0	3.00
Hyperdynamics	0	0	0	0	0.00

Viper Energy currently has a consensus target price of $59.00, suggesting a potential upside of 30.53%. Given Viper Energy’s stronger consensus rating and higher possible upside, analysts plainly believe Viper Energy is more favorable than Hyperdynamics.

Earnings & Valuation

This table compares Viper Energy and Hyperdynamics”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Viper Energy	$859.75 million	11.20	$200.09 million	$3.67	12.32
Hyperdynamics	N/A	N/A	N/A	N/A	N/A

Viper Energy has higher revenue and earnings than Hyperdynamics.

Summary

Viper Energy beats Hyperdynamics on 8 of the 10 factors compared between the two stocks.

About Viper Energy

Viper Energy, Inc. engages in the acquisition of oil and natural gas properties. It owns, acquires, and exploits oil and natural gas properties in North America. The company was founded on February 27, 2014 and is headquartered in Midland, TX.

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.