Q: Which two would the better choices at this time?
5i Research Answer:
All three have had strong runs with the price of oil expanding in the past couple of months. SDE trades at the highest valuation, OVV is the largest name ($23B market cap vs. HWX and SDE around $3B), and HWX is typically the least volatile of the names. HWX pays a 3.6% yield, and it generates decent free cash flows. OVV has a 2.0% yield, forward growth estimates look decent, and margins are strong. SDE does not pay a yield, forward growth looks strong, and its margin profile looks attractive. For more of a growth tilt, we would lean towards SDE, and our second choice is HWX.