Critical Contrast: Matador Resources (NYSE:MTDR) vs. TotalEnergies (NYSE:TTE)

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Matador Resources	$2.81 billion	2.71	$846.07 million	$7.55	8.07
TotalEnergies	$218.95 billion	0.64	$21.38 billion	$7.05	8.46

TotalEnergies has higher revenue and earnings than Matador Resources. Matador Resources is trading at a lower price-to-earnings ratio than TotalEnergies, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Matador Resources has a beta of 3.26, meaning that its stock price is 226% more volatile than the S&P 500. Comparatively, TotalEnergies has a beta of 0.64, meaning that its stock price is 36% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for Matador Resources and TotalEnergies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Matador Resources	0	1	13	0	2.93
TotalEnergies	0	5	1	2	2.63

Matador Resources presently has a consensus price target of $74.92, indicating a potential upside of 22.99%. TotalEnergies has a consensus price target of $78.75, indicating a potential upside of 32.00%. Given TotalEnergies’ higher probable upside, analysts plainly believe TotalEnergies is more favorable than Matador Resources.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Matador Resources	27.45%	20.01%	10.67%
TotalEnergies	7.78%	15.93%	6.75%

Dividends

Matador Resources pays an annual dividend of $1.00 per share and has a dividend yield of 1.6%. TotalEnergies pays an annual dividend of $2.59 per share and has a dividend yield of 4.3%. Matador Resources pays out 13.2% of its earnings in the form of a dividend. TotalEnergies pays out 36.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Institutional and Insider Ownership

92.0% of Matador Resources shares are owned by institutional investors. Comparatively, 13.2% of TotalEnergies shares are owned by institutional investors. 6.1% of Matador Resources shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Matador Resources beats TotalEnergies on 11 of the 17 factors compared between the two stocks.

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.

About TotalEnergies

TotalEnergies SE, a multi-energy company, produces and markets oil and biofuels, natural gas, green gases, renewables, and electricity in France, rest of Europe, North America, Africa, and internationally. It operates through five segments: Exploration & Production, Integrated LNG, Integrated Power, Refining & Chemicals, and Marketing & Services. The Exploration & Production segment is involved in the exploration and production of oil and natural gas. The Integrated LNG segment comprises the integrated gas chain, including upstream and midstream liquified natural gas (LNG) activities, as well as biogas, hydrogen, and gas trading activities. The Integrated Power segment includes generation, storage, electricity trading, and B2B-B2C distribution of gas and electricity. The Refining & Chemicals segment consists of refining, petrochemicals, and specialty chemicals. This segment also includes oil supply, trading, and marine shipping activities. The Marketing & Services segment supplies and markets petroleum products. The company was formerly known as TOTAL SE and changed its name to TotalEnergies SE in June 2021. TotalEnergies SE was founded in 1924 and is headquartered in Courbevoie, France.