Headwater Exploration (HWX) Competitors

Headwater Exploration (TSE:HWX) and Strathcona Resources (TSE:SCR) are both energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their community ranking, risk, valuation, analyst recommendations, institutional ownership, media sentiment, earnings, profitability and dividends.

Is HWX or SCR a better dividend stock?

Headwater Exploration pays an annual dividend of C$0.40 per share and has a dividend yield of 6.1%. Strathcona Resources pays an annual dividend of C$1.00 per share and has a dividend yield of 3.4%. Headwater Exploration pays out 51.3% of its earnings in the form of a dividend. Strathcona Resources pays out 57.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Headwater Exploration is clearly the better dividend stock, given its higher yield and lower payout ratio.

Does the media prefer HWX or SCR?

In the previous week, Strathcona Resources had 3 more articles in the media than Headwater Exploration. MarketBeat recorded 4 mentions for Strathcona Resources and 1 mentions for Headwater Exploration. Headwater Exploration's average media sentiment score of 1.08 beat Strathcona Resources' score of 0.80 indicating that Headwater Exploration is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Headwater Exploration	0 Very Positive mention(s)	1 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Strathcona Resources	0 Very Positive mention(s)	1 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has stronger earnings & valuation, HWX or SCR?

Strathcona Resources has higher revenue and earnings than Headwater Exploration. Headwater Exploration is trading at a lower price-to-earnings ratio than Strathcona Resources, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Headwater Exploration	C$518.46M	2.98	C$184.15M	C$0.78	8.36
Strathcona Resources	C$2.46B	2.58	C$370.36M	C$1.73	17.10

Is HWX or SCR more profitable?

Headwater Exploration has a net margin of 35.52% compared to Strathcona Resources' net margin of 15.04%. Headwater Exploration's return on equity of 28.63% beat Strathcona Resources' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Headwater Exploration	35.52%	28.63%	17.83%
Strathcona Resources	15.04%	9.70%	6.81%

Do insiders & institutionals hold more shares of HWX or SCR?

32.4% of Headwater Exploration shares are held by institutional investors. Comparatively, 0.4% of Strathcona Resources shares are held by institutional investors. 5.1% of Headwater Exploration shares are held by company insiders. Comparatively, 91.3% of Strathcona Resources shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Do analysts recommend HWX or SCR?

Headwater Exploration currently has a consensus target price of C$9.21, indicating a potential upside of 41.23%. Strathcona Resources has a consensus target price of C$35.50, indicating a potential upside of 19.73%. Given Headwater Exploration's stronger consensus rating and higher possible upside, equities research analysts plainly believe Headwater Exploration is more favorable than Strathcona Resources.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Headwater Exploration	0 Sell rating(s)	1 Hold rating(s)	3 Buy rating(s)	1 Strong Buy rating(s)	3.00
Strathcona Resources	0 Sell rating(s)	4 Hold rating(s)	1 Buy rating(s)	1 Strong Buy rating(s)	2.50

Does the MarketBeat Community favor HWX or SCR?

Strathcona Resources received 66 more outperform votes than Headwater Exploration when rated by MarketBeat users. Likewise, 59.67% of users gave Strathcona Resources an outperform vote while only 56.76% of users gave Headwater Exploration an outperform vote.

Company	Underperform	Outperform
Headwater Exploration	Outperform Votes 42 56.76%	Underperform Votes 32 43.24%
Strathcona Resources	Outperform Votes 108 59.67%	Underperform Votes 73 40.33%

Summary

Headwater Exploration beats Strathcona Resources on 11 of the 19 factors compared between the two stocks.