Head-To-Head Survey: CENTENNIAL RES (NASDAQ:CDEV) & Royal Dutch Shell PLC (RDS.B)

CENTENNIAL RES (NASDAQ: CDEV) and Royal Dutch Shell PLC (NYSE:RDS.B) are both mid-cap oils/energy companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, analyst recommendations, dividends, valuation, risk, institutional ownership and earnings.

Dividends

Royal Dutch Shell PLC pays an annual dividend of $3.76 per share. CENTENNIAL RES does not pay a dividend. Royal Dutch Shell PLC pays out 191.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Risk & Volatility

CENTENNIAL RES has a beta of 2.14, indicating that its share price is 114% more volatile than the S&P 500. Comparatively, Royal Dutch Shell PLC has a beta of 1.08, indicating that its share price is 8% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for CENTENNIAL RES and Royal Dutch Shell PLC, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CENTENNIAL RES 0 1 10 0 2.91
Royal Dutch Shell PLC 0 0 0 0 N/A

CENTENNIAL RES currently has a consensus price target of $22.50, indicating a potential upside of 34.49%.

Institutional & Insider Ownership

5.2% of Royal Dutch Shell PLC shares are held by institutional investors. 44.7% of CENTENNIAL RES shares are held by insiders. Comparatively, 1.0% of Royal Dutch Shell PLC shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares CENTENNIAL RES and Royal Dutch Shell PLC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CENTENNIAL RES N/A -8.27% -7.48%
Royal Dutch Shell PLC 2.93% 6.04% 2.80%

Valuation and Earnings

This table compares CENTENNIAL RES and Royal Dutch Shell PLC’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
CENTENNIAL RES $235.87 million 14.69 $121.11 million N/A N/A
Royal Dutch Shell PLC N/A N/A N/A $1.96 N/A

CENTENNIAL RES has higher revenue and earnings than Royal Dutch Shell PLC.

Summary

CENTENNIAL RES beats Royal Dutch Shell PLC on 5 of the 9 factors compared between the two stocks.

CENTENNIAL RES Company Profile

Centennial Resource Development, Inc. is an independent oil and natural gas company. The Company is focused on the development of unconventional oil and associated liquids-rich natural gas reserves in the Permian Basin. The Company’s assets are concentrated in the Delaware Basin, a sub-basin of the Permian Basin. Its properties consist of large, contiguous acreage blocks in Reeves, Ward and Pecos counties in West Texas. As of December 31, 2016, the Company held approximately 92% membership interest in Centennial Resource Production, LLC (CRP). As of December 31, 2016, its portfolio included 106 operated producing horizontal wells. The horizontal wells span an area of approximately 45 miles long by 20 miles wide where it had commercial production in five zones: the 3rd Bone Spring Sandstone, Upper Wolfcamp A, Lower Wolfcamp A, Wolfcamp B and Wolfcamp C.

Royal Dutch Shell PLC Company Profile

The Royal Dutch Shell plc explores for crude oil and natural gas around the world, both in conventional fields and from sources, such as tight rock, shale and coal formations. The Company’s segments include Integrated Gas, Upstream, Downstream and Corporate. The Integrated Gas segment is engaged in the liquefaction and transportation of gas and the conversion of natural gas to liquids to provide fuels and other products, as well as projects with an integrated activity, ranging from producing to commercializing gas. The Upstream segment includes the operations of Upstream, which is engaged in the exploration for and extraction of crude oil, natural gas and natural gas liquids, and the marketing and transportation of oil and gas, and Oil Sands, which is engaged in the extraction of bitumen from mined oil sands and conversion into synthetic crude oil. The Downstream segment is engaged in oil products and chemicals manufacturing, and marketing activities.

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