Critical Contrast: Rock Energy Resources (OTCMKTS:RCKE) and Matador Resources (NYSE:MTDR)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Rock Energy Resources	N/A	N/A	N/A
Matador Resources	22.57%	16.53%	8.27%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Rock Energy Resources and Matador Resources, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rock Energy Resources	0	0	0	0	0.00
Matador Resources	0	2	13	1	2.94

Matador Resources has a consensus target price of $67.27, suggesting a potential upside of 47.35%. Given Matador Resources’ stronger consensus rating and higher probable upside, analysts plainly believe Matador Resources is more favorable than Rock Energy Resources.

Insider & Institutional Ownership

92.0% of Matador Resources shares are owned by institutional investors. 88.0% of Rock Energy Resources shares are owned by company insiders. Comparatively, 5.8% of Matador Resources shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Rock Energy Resources and Matador Resources”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rock Energy Resources	N/A	N/A	N/A	N/A	N/A
Matador Resources	$3.50 billion	1.62	$885.32 million	$6.83	6.68

Matador Resources has higher revenue and earnings than Rock Energy Resources.

Summary

Matador Resources beats Rock Energy Resources on 9 of the 10 factors compared between the two stocks.

About Rock Energy Resources

Rock Energy Resources, Inc., through its subsidiary, engages in the development of gold and associated mineral assets. It holds interests in the Red Arrow mine. The company was founded on April 16, 2004 and is headquartered in Houston, TX.

About Matador Resources

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 through 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. In addition, the company conducts midstream operations in support of its exploration, development, and production operations. Further, it provides natural gas processing and oil transportation services; and oil, natural gas, and produced water gathering services, as well as produced water disposal services to third parties. The company sells natural gas to unaffiliated independent marketing companies and unaffiliated midstream companies. 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.