Hallador Energy (NASDAQ:HNRG – Get Free Report) and Meren Energy (OTCMKTS:AOIFF – Get Free Report) are both small-cap energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, risk, valuation, analyst recommendations, profitability, institutional ownership and earnings.
Volatility and Risk
Hallador Energy has a beta of 0.46, suggesting that its share price is 54% less volatile than the S&P 500. Comparatively, Meren Energy has a beta of 0.6, suggesting that its share price is 40% less volatile than the S&P 500.
Institutional & Insider Ownership
61.4% of Hallador Energy shares are held by institutional investors. 23.7% of Hallador Energy shares are held by company insiders. Comparatively, 1.0% of Meren Energy shares are held 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.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Hallador Energy | -46.61% | 11.58% | 4.43% |
| Meren Energy | N/A | 3.52% | 1.68% |
Valuation & Earnings
This table compares Hallador Energy and Meren Energy”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Hallador Energy | $404.39 million | 2.04 | -$226.14 million | ($4.99) | -3.84 |
| Meren Energy | N/A | N/A | -$279.10 million | ($0.52) | -2.65 |
Hallador Energy has higher revenue and earnings than Meren Energy. Hallador Energy is trading at a lower price-to-earnings ratio than Meren Energy, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Hallador Energy and Meren Energy, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Hallador Energy | 0 | 2 | 2 | 2 | 3.00 |
| Meren Energy | 0 | 0 | 0 | 1 | 4.00 |
Hallador Energy presently has a consensus target price of $19.00, indicating a potential downside of 0.73%. Given Hallador Energy’s higher possible upside, equities research analysts plainly believe Hallador Energy is more favorable than Meren Energy.
Summary
Hallador Energy beats Meren Energy on 9 of the 14 factors compared between the two stocks.
About Hallador Energy
Hallador Energy Company, through its subsidiaries, engages in the production of steam coal in the State of Indiana for the electric power generation industry. The company owns the Oaktown Mine 1 and Oaktown Mine 2 underground mines in Oaktown; Freelandville Center Pit surface mine in Freelandville; and Prosperity Surface mine in Petersburg, Indiana. It is also involved in gas exploration activities in Indiana; and operation of logistics transport facility. Hallador Energy Company was founded in 1949 and is headquartered in Terre Haute, Indiana.
About Meren Energy
Africa Oil Corp., together with its subsidiaries, operates as an oil and gas exploration and production company in Kenya, Nigeria, and South Africa. The company holds interests in producing and development assets in deep-water Nigeria, and development assets in Kenya. It also has a portfolio of exploration and appraisal assets in Namibia, Nigeria, South Africa, and Kenya, as well as Guyana and Senegal Guinea Bissau Joint Development Zone. The company was formerly known as Canmex Minerals Corporation and changed its name to Africa Oil Corp. in August 2007. Africa Oil Corp. was incorporated in 1983 and is headquartered in Vancouver, Canada.
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