Blue Ridge Mountain Resources (OTCMKTS: MHRCQ) and Noble Corporation (NYSE:NE) are both small-cap basic materials companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, institutional ownership, dividends, profitability, earnings and valuation.

Insider and Institutional Ownership

91.7% of Noble Corporation shares are owned by institutional investors. 1.6% of Noble Corporation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and target prices for Blue Ridge Mountain Resources and Noble Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Blue Ridge Mountain Resources 0 0 0 0 N/A
Noble Corporation 5 17 4 0 1.96

Noble Corporation has a consensus price target of $5.60, indicating a potential upside of 41.00%. Given Noble Corporation’s higher probable upside, analysts clearly believe Noble Corporation is more favorable than Blue Ridge Mountain Resources.

Volatility and Risk

Blue Ridge Mountain Resources has a beta of 2.75, suggesting that its share price is 175% more volatile than the S&P 500. Comparatively, Noble Corporation has a beta of 2.36, suggesting that its share price is 136% more volatile than the S&P 500.

Profitability

This table compares Blue Ridge Mountain Resources and Noble Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Blue Ridge Mountain Resources -2,141.83% N/A -174.34%
Noble Corporation -136.22% -3.94% -2.19%

Earnings & Valuation

This table compares Blue Ridge Mountain Resources and Noble Corporation’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Blue Ridge Mountain Resources N/A N/A N/A ($1.02) 0.00
Noble Corporation $2.30 billion 0.42 -$929.58 million ($7.30) -0.54

Blue Ridge Mountain Resources has higher revenue, but lower earnings than Noble Corporation. Noble Corporation is trading at a lower price-to-earnings ratio than Blue Ridge Mountain Resources, indicating that it is currently the more affordable of the two stocks.

Summary

Noble Corporation beats Blue Ridge Mountain Resources on 7 of the 10 factors compared between the two stocks.

About Blue Ridge Mountain Resources

Blue Ridge Mountain Resources, Inc., formerly Magnum Hunter Resources Corporation, is an independent exploration and production company engaged in the acquisition, development and production of natural gas, natural gas liquids and crude oil, primarily in the states of West Virginia and Ohio. The Company operates through three segments: Upstream, Midstream and Oil Field Services. The Upstream segment is organized and operated to explore for and produce crude oil and natural gas within the geographic boundaries of the United States and Canada. The Midstream segment consists primarily of Eureka Hunter Holdings, LLC (Eureka Midstream Holdings), which markets natural gas and operates a network of pipelines and compression stations that gather natural gas and natural gas liquids (NGLs) in the United States for transportation to market. The Oilfield Services segment provides drilling services to oil and natural gas exploration and production companies.

About Noble Corporation

Noble Corporation is an offshore drilling contractor for the oil and gas industry. The Company performs contract drilling services with its fleet of 79 mobile offshore drilling units and one floating production storage and offloading unit (NYSE:NE) located globally.

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