QEP Resources (QEP) & Centennial Resource Development (CDEV) Head to Head Analysis

QEP Resources (NYSE: QEP) and Centennial Resource Development (NASDAQ:CDEV) are both mid-cap energy companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, institutional ownership, risk and profitability.

Analyst Ratings

This is a breakdown of current ratings for QEP Resources and Centennial Resource Development, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
QEP Resources 1 5 10 1 2.65
Centennial Resource Development 0 1 15 0 2.94

QEP Resources currently has a consensus price target of $13.93, suggesting a potential upside of 44.99%. Centennial Resource Development has a consensus price target of $22.71, suggesting a potential upside of 14.49%. Given QEP Resources’ higher possible upside, equities research analysts clearly believe QEP Resources is more favorable than Centennial Resource Development.

Volatility and Risk

QEP Resources has a beta of 1.73, meaning that its share price is 73% more volatile than the S&P 500. Comparatively, Centennial Resource Development has a beta of 2, meaning that its share price is 100% more volatile than the S&P 500.

Earnings & Valuation

This table compares QEP Resources and Centennial Resource Development’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
QEP Resources $1.38 billion 1.68 -$1.25 billion ($0.06) -160.17
Centennial Resource Development $98.83 million 55.38 -$226.80 million N/A N/A

Centennial Resource Development has lower revenue, but higher earnings than QEP Resources.

Institutional & Insider Ownership

93.1% of QEP Resources shares are held by institutional investors. Comparatively, 93.4% of Centennial Resource Development shares are held by institutional investors. 1.4% of QEP Resources shares are held by company insiders. Comparatively, 44.7% of Centennial Resource Development shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares QEP Resources and Centennial Resource Development’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
QEP Resources -0.90% -3.48% -1.72%
Centennial Resource Development -49.20% -5.52% -5.19%

Summary

Centennial Resource Development beats QEP Resources on 7 of the 13 factors compared between the two stocks.

About QEP Resources

QEP Resources, Inc. is an independent crude oil and natural gas exploration and production company. The Company focuses on two regions of the United States: the Northern Region (primarily in North Dakota, Wyoming and Utah) and the Southern Region (primarily in Texas and Louisiana). The Company conducts exploration and production activities in North America’s hydrocarbon resource plays. The Company has an inventory of developed and undeveloped drilling locations in the Permian Basin in western Texas, the Williston Basin in North Dakota, Haynesville/Cotton Valley in northwestern Louisiana, the Uinta Basin in eastern Utah and other properties in Wyoming, Utah and Colorado. It sells gas volumes to wholesale marketers, industrial users, local distribution companies and utilities. It sells oil and natural gas liquid (NGL) volumes to refiners, marketers and other companies.

About Centennial Resource Development

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.

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