Headwater Exploration (HWX) Competitors

Headwater Exploration (TSE:HWX) and PrairieSky Royalty (TSE:PSK) are both energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, dividends, analyst recommendations, valuation, earnings and media sentiment.

Do analysts recommend HWX or PSK?

Headwater Exploration presently has a consensus price target of C$8.17, suggesting a potential upside of 21.71%. PrairieSky Royalty has a consensus price target of C$30.86, suggesting a potential upside of 30.75%. Given PrairieSky Royalty's higher probable upside, analysts clearly believe PrairieSky Royalty is more favorable than Headwater Exploration.

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
PrairieSky Royalty	0 Sell rating(s)	3 Hold rating(s)	2 Buy rating(s)	2 Strong Buy rating(s)	2.86

Do institutionals and insiders hold more shares of HWX or PSK?

32.4% of Headwater Exploration shares are held by institutional investors. Comparatively, 66.0% of PrairieSky Royalty shares are held by institutional investors. 5.1% of Headwater Exploration shares are held by insiders. Comparatively, 0.5% of PrairieSky Royalty shares are held by 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.

Which has more volatility & risk, HWX or PSK?

Headwater Exploration has a beta of 1.55, meaning that its stock price is 55% more volatile than the S&P 500. Comparatively, PrairieSky Royalty has a beta of 1.78, meaning that its stock price is 78% more volatile than the S&P 500.

Does the media refer more to HWX or PSK?

In the previous week, PrairieSky Royalty had 1 more articles in the media than Headwater Exploration. MarketBeat recorded 1 mentions for PrairieSky Royalty and 0 mentions for Headwater Exploration. Headwater Exploration's average media sentiment score of 0.00 equaled PrairieSky Royalty'saverage media sentiment score.

Company	Overall Sentiment
Headwater Exploration	Neutral
PrairieSky Royalty	Neutral

Is HWX or PSK more profitable?

PrairieSky Royalty has a net margin of 42.28% compared to Headwater Exploration's net margin of 35.52%. Headwater Exploration's return on equity of 28.63% beat PrairieSky Royalty's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Headwater Exploration	35.52%	28.63%	17.83%
PrairieSky Royalty	42.28%	7.83%	5.99%

Which has preferable earnings & valuation, HWX or PSK?

PrairieSky Royalty has lower revenue, but higher earnings than Headwater Exploration. Headwater Exploration is trading at a lower price-to-earnings ratio than PrairieSky Royalty, 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	3.07	C$184.15M	C$0.78	8.60
PrairieSky Royalty	C$508.08M	11.08	C$214.83M	C$0.90	26.14

Is HWX or PSK a better dividend stock?

Headwater Exploration pays an annual dividend of C$0.40 per share and has a dividend yield of 6.0%. PrairieSky Royalty pays an annual dividend of C$1.00 per share and has a dividend yield of 4.2%. Headwater Exploration pays out 51.3% of its earnings in the form of a dividend. PrairieSky Royalty pays out 110.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Headwater Exploration is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

PrairieSky Royalty beats Headwater Exploration on 10 of the 18 factors compared between the two stocks.