Matador Resources (NYSE:MTDR – Get Free Report) and Southwestern Energy (NYSE:SWN – Get Free Report) are both mid-cap oils/energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, valuation, risk, dividends, institutional ownership and profitability.
Valuation & Earnings
This table compares Matador Resources and Southwestern Energy’s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Matador Resources | $2.82 billion | 2.74 | $846.07 million | $7.05 | 9.17 |
| Southwestern Energy | $6.52 billion | 1.23 | $1.56 billion | $1.41 | 5.17 |
Southwestern Energy has higher revenue and earnings than Matador Resources. Southwestern Energy is trading at a lower price-to-earnings ratio than Matador Resources, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Matador Resources | 0 | 0 | 10 | 0 | 3.00 |
| Southwestern Energy | 1 | 10 | 3 | 0 | 2.14 |
Matador Resources presently has a consensus price target of $73.40, suggesting a potential upside of 13.59%. Southwestern Energy has a consensus price target of $8.04, suggesting a potential upside of 10.22%. Given Matador Resources’ stronger consensus rating and higher possible upside, analysts plainly believe Matador Resources is more favorable than Southwestern Energy.
Risk & Volatility
Matador Resources has a beta of 3.32, suggesting that its share price is 232% more volatile than the S&P 500. Comparatively, Southwestern Energy has a beta of 1.12, suggesting that its share price is 12% more volatile than the S&P 500.
Institutional and Insider Ownership
92.0% of Matador Resources shares are owned by institutional investors. Comparatively, 87.0% of Southwestern Energy shares are owned by institutional investors. 6.0% of Matador Resources shares are owned by insiders. Comparatively, 0.6% of Southwestern Energy shares are owned by 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 Matador Resources and Southwestern Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Matador Resources | 30.14% | 21.54% | 11.56% |
| Southwestern Energy | 23.87% | 11.74% | 5.81% |
Summary
Matador Resources beats Southwestern Energy on 12 of the 14 factors compared between the two stocks.
About Matador Resources
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 through 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. In addition, the company conducts midstream operations in support of its exploration, development, and production operations. Further, it provides natural gas processing and oil transportation services; and oil, natural gas, and produced water gathering services, as well as produced water disposal services to third parties. The company sells natural gas to unaffiliated independent marketing companies and unaffiliated midstream companies. 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.
About Southwestern Energy
Southwestern Energy Company, an independent energy company, engages in the exploration, development, and production of natural gas, oil, and natural gas liquids (NGLs) in the United States. It operates through two segments, Exploration and Production, and Marketing. The company focuses on the development of unconventional natural gas and oil reservoirs located in Pennsylvania, West Virginia, Ohio, and Louisiana. It also engages in the marketing and transportation of natural gas, oil, and NGLs. It serves LNG exporters, energy companies, utilities, and industrial purchasers of natural gas. Southwestern Energy Company was incorporated in 1929 and is headquartered in Spring, Texas.
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