Comparing Kosmos Energy (NYSE:KOS) & Harbour Energy (OTCMKTS:HBRIY)

Harbour Energy (OTCMKTS:HBRIY) and Kosmos Energy (NYSE:KOS) are both energy companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, profitability, dividends, analyst recommendations, earnings, institutional ownership and valuation.

Risk & Volatility

Harbour Energy has a beta of 0.44, indicating that its share price is 56% less volatile than the S&P 500. Comparatively, Kosmos Energy has a beta of 1.43, indicating that its share price is 43% more volatile than the S&P 500.

Profitability

This table compares Harbour Energy and Kosmos Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Harbour Energy	N/A	N/A	N/A
Kosmos Energy	-10.74%	-14.16%	-3.00%

Insider and Institutional Ownership

95.3% of Kosmos Energy shares are owned by institutional investors. 2.0% of Kosmos Energy shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Harbour Energy and Kosmos Energy”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Harbour Energy	$6.23 billion	0.67	-$108.00 million	N/A	N/A
Kosmos Energy	$1.49 billion	0.56	$189.85 million	($0.33)	-5.29

Kosmos Energy has lower revenue, but higher earnings than Harbour Energy.

Analyst Ratings

This is a summary of current ratings and target prices for Harbour Energy and Kosmos Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Harbour Energy	0	1	1	0	2.50
Kosmos Energy	1	4	1	0	2.00

Kosmos Energy has a consensus price target of $4.12, indicating a potential upside of 136.10%. Given Kosmos Energy’s higher probable upside, analysts plainly believe Kosmos Energy is more favorable than Harbour Energy.

Dividends

Harbour Energy pays an annual dividend of $0.22 per share and has a dividend yield of 7.6%. Kosmos Energy pays an annual dividend of $0.18 per share and has a dividend yield of 10.4%. Kosmos Energy pays out -54.8% of its earnings in the form of a dividend.

Summary

Kosmos Energy beats Harbour Energy on 7 of the 13 factors compared between the two stocks.

About Harbour Energy

Harbour Energy plc, together with its subsidiaries, engages in the acquisition, exploration, development, and production of oil and gas reserves. The company holds interests in various properties located in the United Kingdom, Norwegian Continental Shelves, Indonesia, Vietnam, and Mexico. It is also involved in the decommissioning, financing, gas trading, and risk mitigation activities. The company was incorporated in 2002 and is headquartered in London, the United Kingdom.

About Kosmos Energy

Kosmos Energy Ltd., together with its subsidiaries, engages in the exploration, development, and production of oil and gas along the Atlantic Margins in the United States. The company’s primary assets include production projects located in offshore Ghana, Equatorial Guinea, and the U.S. Gulf of Mexico, as well as gas projects located in offshore Mauritania and Senegal. It undertakes a proven basin exploration program in Equatorial Guinea and the U.S. Gulf of Mexico. Kosmos Energy Ltd. was founded in 2003 and is headquartered in Dallas, Texas.