Headwater Exploration (HWX) Competitors

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

Which has more volatility and risk, HWX or WCP?

Headwater Exploration has a beta of 1.55, meaning that its stock price is 55% more volatile than the S&P 500. Comparatively, Whitecap Resources has a beta of 2.67, meaning that its stock price is 167% more volatile than the S&P 500.

Is HWX or WCP more profitable?

Headwater Exploration has a net margin of 35.52% compared to Whitecap Resources' net margin of 24.23%. Headwater Exploration's return on equity of 28.63% beat Whitecap Resources' return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Headwater Exploration	35.52%	28.63%	17.83%
Whitecap Resources	24.23%	15.86%	6.86%

Do institutionals and insiders believe in HWX or WCP?

32.4% of Headwater Exploration shares are owned by institutional investors. Comparatively, 23.8% of Whitecap Resources shares are owned by institutional investors. 5.1% of Headwater Exploration shares are owned by insiders. Comparatively, 0.8% of Whitecap Resources shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Do analysts prefer HWX or WCP?

Headwater Exploration presently has a consensus target price of C$8.17, suggesting a potential upside of 19.22%. Whitecap Resources has a consensus target price of C$13.13, suggesting a potential upside of 31.25%. Given Whitecap Resources' stronger consensus rating and higher possible upside, analysts plainly believe Whitecap Resources 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
Whitecap Resources	0 Sell rating(s)	1 Hold rating(s)	4 Buy rating(s)	2 Strong Buy rating(s)	3.14

Does the media favor HWX or WCP?

In the previous week, Whitecap Resources had 4 more articles in the media than Headwater Exploration. MarketBeat recorded 4 mentions for Whitecap Resources and 0 mentions for Headwater Exploration. Whitecap Resources' average media sentiment score of 0.32 beat Headwater Exploration's score of 0.00 indicating that Whitecap Resources is being referred to more favorably in the news media.

Company	Overall Sentiment
Headwater Exploration	Neutral
Whitecap Resources	Neutral

Which has preferable valuation and earnings, HWX or WCP?

Whitecap Resources has higher revenue and earnings than Headwater Exploration. Whitecap Resources is trading at a lower price-to-earnings ratio than Headwater Exploration, 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	3.13	C$184.15M	C$0.78	8.78
Whitecap Resources	C$3.55B	1.64	C$860.11M	C$1.48	6.75

Is HWX or WCP a better dividend stock?

Headwater Exploration pays an annual dividend of C$0.40 per share and has a dividend yield of 5.8%. Whitecap Resources pays an annual dividend of C$0.73 per share and has a dividend yield of 7.3%. Headwater Exploration pays out 51.3% of its earnings in the form of a dividend. Whitecap Resources pays out 49.3% 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. Whitecap Resources is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Whitecap Resources beats Headwater Exploration on 12 of the 19 factors compared between the two stocks.