Analyzing APA (NASDAQ:APA) & HyperDynamics (OTCMKTS:HDYNQ)

HyperDynamics (OTCMKTS:HDYNQ) and APA (NASDAQ:APA) are both energy companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, risk, analyst recommendations, earnings, institutional ownership, valuation and dividends.

Profitability

This table compares HyperDynamics and APA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
HyperDynamics	N/A	N/A	N/A
APA	10.53%	20.98%	7.21%

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HyperDynamics	N/A	N/A	N/A	N/A	N/A
APA	$9.64 billion	0.90	$804.00 million	$4.16	5.86

APA has higher revenue and earnings than HyperDynamics.

Analyst Recommendations

This is a summary of current ratings and price targets for HyperDynamics and APA, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HyperDynamics	0	0	0	0	0.00
APA	2	16	3	0	2.05

APA has a consensus price target of $24.50, suggesting a potential upside of 0.49%. Given APA’s stronger consensus rating and higher probable upside, analysts clearly believe APA is more favorable than HyperDynamics.

Institutional & Insider Ownership

83.0% of APA shares are owned by institutional investors. 5.9% of HyperDynamics shares are owned by insiders. Comparatively, 0.7% of APA shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

HyperDynamics has a beta of 9.61, indicating that its share price is 861% more volatile than the S&P 500. Comparatively, APA has a beta of 1.12, indicating that its share price is 12% more volatile than the S&P 500.

Summary

APA beats HyperDynamics on 8 of the 10 factors compared between the two stocks.

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.

About APA

APA Corporation, an independent energy company, explores for, develops, and produces natural gas, crude oil, and natural gas liquids. It has oil and gas operations in the United States, Egypt, and North Sea. The company also has exploration and appraisal activities in Suriname, as well as holds interests in projects located in Uruguay and internationally. APA Corporation was incorporated in 1954 and is headquartered in Houston, Texas.