Sundance Energy Australia (OTCMKTS:SDCJF) & Hess Midstream (NYSE:HESM) Financial Analysis

Hess Midstream (NYSE:HESM) and Sundance Energy Australia (OTCMKTS:SDCJF) are both oils/energy companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, institutional ownership, dividends and analyst recommendations.

Analyst Ratings

This is a summary of current ratings for Hess Midstream and Sundance Energy Australia, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hess Midstream	0	3	3	0	2.50
Sundance Energy Australia	0	0	0	0	N/A

Hess Midstream currently has a consensus price target of $36.50, indicating a potential upside of 2.36%. Given Hess Midstream’s higher probable upside, research analysts plainly believe Hess Midstream is more favorable than Sundance Energy Australia.

Insider and Institutional Ownership

92.4% of Hess Midstream shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Hess Midstream and Sundance Energy Australia’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hess Midstream	$1.35 billion	5.91	$118.60 million	$2.21	16.14
Sundance Energy Australia	$164.93 million	0.06	-$28.14 million	N/A	N/A

Hess Midstream has higher revenue and earnings than Sundance Energy Australia.

Profitability

This table compares Hess Midstream and Sundance Energy Australia’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hess Midstream	10.18%	35.08%	3.78%
Sundance Energy Australia	24.02%	13.45%	6.16%

Volatility and Risk

Hess Midstream has a beta of 1.49, meaning that its share price is 49% more volatile than the S&P 500. Comparatively, Sundance Energy Australia has a beta of 3.96, meaning that its share price is 296% more volatile than the S&P 500.

Summary

Hess Midstream beats Sundance Energy Australia on 7 of the 10 factors compared between the two stocks.

About Hess Midstream

Hess Midstream LP owns, develops, operates, and acquires midstream assets and provide fee-based services to Hess and third-party customers in the United States. It operates through three segments: Gathering; Processing and Storage; and Terminaling and Export. The Gathering segment owns natural gas gathering and compression systems; crude oil gathering systems; and produced water gathering and disposal facilities. Its gathering systems consists of approximately 1,410 miles of high and low pressure natural gas and natural gas liquids gathering pipelines with capacity of approximately 660 million cubic feet per day; crude oil gathering system comprises approximately 570 miles of crude oil gathering pipelines; and produced water gathering system that includes approximately 300 miles of pipelines in gathering systems. The Processing and Storage segment comprises Tioga Gas Plant, a natural gas processing and fractionation plant located in Tioga, North Dakota; a 50% interest in the Little Missouri 4 gas processing plant located in south of the Missouri River in McKenzie County, North Dakota; and Mentor Storage Terminal, a propane storage cavern and rail, and truck loading and unloading facility located in Mentor, Minnesota. The Terminaling and Export segment owns Ramberg terminal facility; Tioga rail terminal; crude oil rail cars; and other Dakota access pipeline connections, as well as Johnson's Corner Header System, a crude oil pipeline header system. Hess Midstream LP was founded in 2014 and is based in Houston, Texas.

About Sundance Energy Australia

Sundance Energy Australia Limited operates as an onshore oil and gas company in the United States. The company explores for, develops, and produces oil and natural gas. Its exploration and development activities are focused on the Eagle Ford project in the South-Texas-Gulf Coast Basin. Sundance Energy Australia Limited was incorporated in 2004 and is based in Wayville, Australia.