Concho Resources (NYSE: CXO) is one of 246 public companies in the “Oil & Gas Exploration and Production” industry, but how does it contrast to its peers? We will compare Concho Resources to related businesses based on the strength of its earnings, profitability, institutional ownership, risk, analyst recommendations, valuation and dividends.
Insider and Institutional Ownership
92.4% of Concho Resources shares are owned by institutional investors. Comparatively, 61.2% of shares of all “Oil & Gas Exploration and Production” companies are owned by institutional investors. 1.0% of Concho Resources shares are owned by insiders. Comparatively, 11.8% of shares of all “Oil & Gas Exploration and Production” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
This table compares Concho Resources and its peers revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Concho Resources||$2.10 billion||$1.72 billion||32.69|
|Concho Resources Competitors||$1.40 billion||$602.68 million||21.62|
Concho Resources has higher revenue and earnings than its peers. Concho Resources is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
This is a summary of current ratings and recommmendations for Concho Resources and its peers, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Concho Resources Competitors||1435||7424||12035||255||2.53|
Concho Resources presently has a consensus target price of $151.47, suggesting a potential upside of 11.64%. As a group, “Oil & Gas Exploration and Production” companies have a potential upside of 37.08%. Given Concho Resources’ peers higher probable upside, analysts clearly believe Concho Resources has less favorable growth aspects than its peers.
Volatility and Risk
Concho Resources has a beta of 1.14, indicating that its share price is 14% more volatile than the S&P 500. Comparatively, Concho Resources’ peers have a beta of 1.42, indicating that their average share price is 42% more volatile than the S&P 500.
This table compares Concho Resources and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Concho Resources Competitors||-437.45%||-2.62%||0.95%|
Concho Resources beats its peers on 9 of the 13 factors compared.
Concho Resources Company Profile
Concho Resources Inc. is an independent oil and natural gas company engaged in the acquisition, development and exploration of oil and natural gas properties. The Company’s four operating areas include the Northern Delaware Basin, the Southern Delaware Basin, the Midland Basin and the New Mexico Shelf. As of December 31, 2016, the Company’s operations were focused in the Permian Basin, which underlies an area of Southeast New Mexico and West Texas approximately 250 miles wide and 300 miles long. The Permian Basin is an oil and natural gas producing region in the United States and is characterized by multiple producing horizons and enhanced recovery potential. As of December 31, 2016, the Company produced approximately 55.1 million barrels of oil equivalent (MMBoe) of oil and natural gas. As of December 31, 2016, all of its 720 MMBoe total estimated proved reserves were located in its core operating areas and consisted of approximately 59.5% oil and 40.5% natural gas.
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