Ecopetrol (NYSE: EC) is one of 23 public companies in the “Integrated Oil & Gas” industry, but how does it weigh in compared to its peers? We will compare Ecopetrol to similar companies based on the strength of its earnings, institutional ownership, risk, valuation, dividends, analyst recommendations and profitability.
Insider & Institutional Ownership
2.2% of Ecopetrol shares are held by institutional investors. Comparatively, 40.0% of shares of all “Integrated Oil & Gas” companies are held by institutional investors. 9.8% of shares of all “Integrated Oil & Gas” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Ecopetrol pays an annual dividend of $0.16 per share and has a dividend yield of 1.4%. Ecopetrol pays out 36.4% of its earnings in the form of a dividend. As a group, “Integrated Oil & Gas” companies pay a dividend yield of 2.9% and pay out 175.9% of their earnings in the form of a dividend.
Valuation and Earnings
This table compares Ecopetrol and its peers top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Ecopetrol||$16.89 billion||$6.54 billion||25.21|
|Ecopetrol Competitors||$52.06 billion||$11.04 billion||-13.49|
Ecopetrol’s peers have higher revenue and earnings than Ecopetrol. Ecopetrol 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.
Volatility & Risk
Ecopetrol has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500. Comparatively, Ecopetrol’s peers have a beta of 1.39, meaning that their average stock price is 39% more volatile than the S&P 500.
This is a breakdown of recent ratings for Ecopetrol and its peers, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Ecopetrol currently has a consensus price target of $10.00, indicating a potential downside of 9.83%. As a group, “Integrated Oil & Gas” companies have a potential upside of 35.99%. Given Ecopetrol’s peers stronger consensus rating and higher possible upside, analysts clearly believe Ecopetrol has less favorable growth aspects than its peers.
This table compares Ecopetrol and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Ecopetrol peers beat Ecopetrol on 10 of the 15 factors compared.
Ecopetrol S.A. is an oil company. The Company operates in Colombia, Peru, Brazil and the United States Gulf Coast. The Company’s segments include Exploration and Production, Transportation and Logistics, and Refining, Petrochemicals and Biofuels. The Company’s Exploration and Production segment includes exploration, development and production activities in Colombia and abroad. The Company’s Transportation and Logistics segment includes the transportation of crude oil, motor fuels, fuel oil and other refined products, including diesel and biofuels. The Company’s main crude oil pipeline systems’ operating capacity is approximately 1.34 million barrels per day (BPD). The Company’s main refineries are the Barrancabermeja refinery, which it directly owns and operates, and a refinery in the Free Trade Zone in Cartagena that is operated by Reficar S.A., a subsidiary of the Company. The Company also owns and operates two other minor refineries: Orito and Apiay.
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