Critical Contrast: Halcon Resources (OTCMKTS:HKRSQ) and Vital Energy (NYSE:VTLE)

Halcon Resources (OTCMKTS:HKRSQ) and Vital Energy (NYSE:VTLE) are both small-cap oils/energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, profitability, institutional ownership, valuation, earnings and dividends.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Halcon Resources and Vital Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Halcon Resources	0	0	0	0	0.00
Vital Energy	3	5	3	0	2.00

Vital Energy has a consensus target price of $47.09, indicating a potential upside of 44.83%. Given Vital Energy’s stronger consensus rating and higher possible upside, analysts clearly believe Vital Energy is more favorable than Halcon Resources.

Insider & Institutional Ownership

86.5% of Vital Energy shares are held by institutional investors. 6.1% of Halcon Resources shares are held by insiders. Comparatively, 1.2% of Vital Energy shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Halcon Resources and Vital Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Halcon Resources	-324.96%	-238.22%	-73.12%
Vital Energy	25.09%	9.05%	4.65%

Valuation & Earnings

This table compares Halcon Resources and Vital Energy”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Halcon Resources	$224.68 million	0.05	-$1.17 billion	N/A	N/A
Vital Energy	$1.86 billion	0.67	$695.08 million	$14.28	2.28

Vital Energy has higher revenue and earnings than Halcon Resources.

Summary

Vital Energy beats Halcon Resources on 10 of the 11 factors compared between the two stocks.

About Halcon Resources

Halcón Resources Corporation, an independent energy company, engages in the acquisition, production, exploration, and development of onshore oil and natural gas assets in the United States. As of December 31, 2018, the company held interests in 56,900 net acres in the Delaware Basin, located in Pecos, Reeves, Ward, and Winkler Counties, Texas. As of December 31, 2018, it had estimated proved reserves of approximately 85.2 million barrels of oil equivalent comprising 50.7 million barrels of crude oil, 17.1 million barrels of natural gas liquids, and 104.7 billion cubic feet of natural gas. The company was formerly known as RAM Energy Resources, Inc. and changed its name to Halcón Resources Corporation in February 2012. Halcón Resources Corporation was founded in 1987 and is headquartered in Houston, Texas. On August 7, 2019, Halcón Resources Corporation along with its affiliates filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for Southern District of Texas.

About Vital Energy

Vital Energy, Inc., an independent energy company, engages in the acquisition, exploration, and development of oil and natural gas properties in the Permian Basin of West Texas, the United States. The company was formerly known as Laredo Petroleum, Inc. and changed its name to Vital Energy, Inc. in January 2023. Vital Energy, Inc. was founded in 2006 and is headquartered in Tulsa, Oklahoma.