Shell (NYSE:SHEL) and Hyperdynamics (OTCMKTS:HDYNQ) Critical Analysis

Shell (NYSE:SHEL) and Hyperdynamics (OTCMKTS:HDYNQ) are both oils/energy companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, profitability, valuation, analyst recommendations, institutional ownership, earnings and risk.

Valuation and Earnings

This table compares Shell and Hyperdynamics”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shell	$302.02 billion	0.72	$19.36 billion	$5.42	12.62
Hyperdynamics	N/A	N/A	N/A	N/A	N/A

Shell has higher revenue and earnings than Hyperdynamics.

Analyst Recommendations

This is a breakdown of current recommendations for Shell and Hyperdynamics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shell	0	3	4	2	2.89
Hyperdynamics	0	0	0	0	N/A

Shell currently has a consensus price target of $82.00, suggesting a potential upside of 19.90%.

Institutional & Insider Ownership

28.6% of Shell shares are owned by institutional investors. 1.0% of Shell shares are owned by company insiders. Comparatively, 5.9% of Hyperdynamics shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Shell and Hyperdynamics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Shell	5.97%	14.56%	6.82%
Hyperdynamics	N/A	N/A	N/A

Summary

Shell beats Hyperdynamics on 7 of the 8 factors compared between the two stocks.

About Shell

Shell plc operates as an energy and petrochemical company Europe, Asia, Oceania, Africa, the United States, and Rest of the Americas. The company operates through Integrated Gas, Upstream, Marketing, Chemicals and Products, and Renewables and Energy Solutions segments. It explores for and extracts crude oil, natural gas, and natural gas liquids; markets and transports oil and gas; produces gas-to-liquids fuels and other products; and operates upstream and midstream infrastructure to deliver gas to market. The company also markets and trades natural gas, liquefied natural gas (LNG), crude oil, electricity, carbon-emission rights; and markets and sells LNG as a fuel for heavy-duty vehicles. In addition, it trades in and refines crude oil and other feed stocks, such as low-carbon fuels, lubricants, bitumen, sulphur, gasoline, diesel, aviation fuel, and marine fuel; produces and sells petrochemicals for industrial use; and manages oil sands activities. Further, the company produces base chemicals comprising ethylene, propylene, and aromatics, as well as intermediate chemicals, such as styrene monomer, propylene oxide, solvents, detergent alcohols, ethylene oxide, and ethylene glycol. Additionally, it generates electricity through wind and solar resources; produces and sells hydrogen; and provides electric vehicle charging services. The company was formerly known as Royal Dutch Shell plc and changed its name to Shell plc in January 2022. Shell plc was founded in 1907 and is headquartered in London, the United Kingdom.

About Hyperdynamics

Hyperdynamics Corporation, together with its subsidiaries, operates as an independent oil and gas exploration company. It engages in the acquisition, exploration, and development of oil and natural gas properties in the Republic of Guinea, Northwest Africa. The company owns a 100% interest in a concession that covers an area of approximately 5,000 square miles in offshore Guinea. Hyperdynamics Corporation was founded in 1983 and is headquartered in Houston, Texas.