Southwestern Energy (NYSE:SWN) vs. HKN (OTCMKTS:HKNI) Financial Survey

Southwestern Energy (NYSE:SWN) and HKN (OTCMKTS:HKNI) are both oils/energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, profitability, institutional ownership, valuation, dividends, analyst recommendations and risk.

Institutional and Insider Ownership

87.0% of Southwestern Energy shares are owned by institutional investors. 0.6% of Southwestern Energy shares are owned by insiders. Comparatively, 0.1% of HKN shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Southwestern Energy and HKN’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Southwestern Energy	-48.91%	10.55%	4.80%
HKN	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent ratings for Southwestern Energy and HKN, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Southwestern Energy	0	10	2	0	2.17
HKN	0	0	0	0	N/A

Southwestern Energy currently has a consensus target price of $8.50, indicating a potential upside of 39.56%. Given Southwestern Energy’s higher probable upside, analysts plainly believe Southwestern Energy is more favorable than HKN.

Earnings and Valuation

This table compares Southwestern Energy and HKN’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Southwestern Energy	$5.64 billion	1.20	$1.56 billion	($1.74)	-3.52
HKN	N/A	N/A	N/A	N/A	N/A

Southwestern Energy has higher revenue and earnings than HKN.

Summary

Southwestern Energy beats HKN on 7 of the 8 factors compared between the two stocks.

About Southwestern Energy

Southwestern Energy Company, an independent energy company, engages in the exploration, development, and production of natural gas, oil, and natural gas liquids (NGLs) in the United States. It operates through two segments, Exploration and Production, and Marketing. The company focuses on the development of unconventional natural gas and oil reservoirs located in Pennsylvania, West Virginia, Ohio, and Louisiana. It also engages in the marketing and transportation of natural gas, oil, and NGLs. It serves LNG exporters, energy companies, utilities, and industrial purchasers of natural gas. Southwestern Energy Company was incorporated in 1929 and is headquartered in Spring, Texas.

About HKN

HKN, Inc. operates as an independent energy company. The company owns an oilfield emulsion breaking technology that purifies oilfield emulsions by breaking and separating the emulsions into oil, water, and solids. It also holds non-operated oil and gas leases and mineral interests in properties located in the Bakken and Niobrara shale oil plays; and rights to acreage in the Permian Basin of Texas. The company was founded in 1973 and is based in Southlake, Texas.