Analyzing FEC Resources (FECOF) and Matador Resources (MTDR)

FEC Resources (OTCMKTS:FECOF) and Matador Resources (NYSE:MTDR) are both oils/energy companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, analyst recommendations, dividends, earnings, profitability and risk.

Analyst Recommendations

This is a summary of current ratings and target prices for FEC Resources and Matador Resources, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FEC Resources 0 0 0 0 N/A
Matador Resources 0 6 11 0 2.65

Matador Resources has a consensus price target of $36.73, indicating a potential upside of 65.91%. Given Matador Resources’ higher probable upside, analysts clearly believe Matador Resources is more favorable than FEC Resources.

Insider & Institutional Ownership

0.0% of FEC Resources shares are held by institutional investors. Comparatively, 87.6% of Matador Resources shares are held by institutional investors. 11.1% of Matador 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.

Volatility & Risk

FEC Resources has a beta of 1.2, indicating that its share price is 20% more volatile than the S&P 500. Comparatively, Matador Resources has a beta of 1.43, indicating that its share price is 43% more volatile than the S&P 500.

Profitability

This table compares FEC Resources and Matador Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
FEC Resources N/A -9.69% -9.51%
Matador Resources 22.69% 11.17% 6.64%

Valuation and Earnings

This table compares FEC Resources and Matador Resources’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
FEC Resources N/A N/A $1.80 million N/A N/A
Matador Resources $544.28 million 4.73 $125.86 million $0.72 30.75

Matador Resources has higher revenue and earnings than FEC Resources.

Summary

Matador Resources beats FEC Resources on 10 of the 10 factors compared between the two stocks.

FEC Resources Company Profile

FEC Resources Inc. engages in the exploration and development of oil and gas, and other mineral related opportunities in the Philippines. The company, through its interest in, Forum Energy Plc, owns a 70% interest in the Service Contract 72, an offshore license located in the West Philippine Sea west of Palawan Island. It also owns 8.46%, 12.40%, and 19.46% interests in the Service Contract 14 Block A Nido, Block B Matinloc, and Block B1 North Matinloc located in the offshore northwest Palawan; and a 66.67% interest in the Service Contract 40 North Cebu covering a total area of 4,580 square kilometers located in the Central Tañon Strait and Visayan Sea. The company is headquartered in Calgary, Canada. FEC Resources Inc. is a subsidiary of PXP Energy Corporation.

Matador Resources Company Profile

Matador Resources Company, an independent energy company, engages in the exploration, development, production, and acquisition of oil and natural gas resources in the United States. It operates in two segments, Exploration and Production, and Midstream. The company primarily holds interests in the Wolfcamp and Bone Spring plays in the Delaware Basin in Southeast New Mexico and West Texas. It also operates the Eagle Ford shale play in South Texas; and the Haynesville shale and Cotton Valley plays in Northwest Louisiana and East Texas. In addition, the company conducts midstream operations in support of its exploration, development, and production operations; provides natural gas processing and oil transportation services; and offers oil, natural gas, and salt water gathering, as well as salt water disposal services to third parties. As of December 31, 2017, its estimated total proved oil and natural gas reserves were 152.8 million barrels of oil equivalent, including 86.7 million stock tank barrels of oil and 396.2 billion cubic feet of natural gas. The company was formerly known as Matador Holdco, Inc. and changed its name to Matador Resources Company in August 2011. Matador Resources Company was founded in 2003 and is headquartered in Dallas, Texas.

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