Unit (NYSE:UNT) and Jones Energy (NYSE:JONE) are both small-cap oils/energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their dividends, risk, earnings, institutional ownership, profitability, valuation and analyst recommendations.
Institutional & Insider Ownership
89.2% of Unit shares are owned by institutional investors. 5.2% of Unit shares are owned by insiders. Comparatively, 32.1% of Jones Energy shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This is a summary of recent ratings and recommmendations for Unit and Jones Energy, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Unit currently has a consensus price target of $26.20, indicating a potential upside of 66.14%. Jones Energy has a consensus price target of $14.00, indicating a potential upside of 9,900.00%. Given Jones Energy’s stronger consensus rating and higher probable upside, analysts clearly believe Jones Energy is more favorable than Unit.
This table compares Unit and Jones Energy’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility & Risk
Unit has a beta of 2.73, meaning that its share price is 173% more volatile than the S&P 500. Comparatively, Jones Energy has a beta of 3.09, meaning that its share price is 209% more volatile than the S&P 500.
Valuation & Earnings
This table compares Unit and Jones Energy’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Unit||$843.28 million||1.04||-$45.29 million||$1.00||15.77|
|Jones Energy||$188.57 million||0.00||-$101.49 million||($8.40)||-0.02|
Unit has higher revenue and earnings than Jones Energy. Jones Energy is trading at a lower price-to-earnings ratio than Unit, indicating that it is currently the more affordable of the two stocks.
Unit beats Jones Energy on 9 of the 14 factors compared between the two stocks.
Unit Company Profile
Unit Corporation, together with its subsidiaries, engages in the exploration, acquisition, development, and production of oil and natural gas properties in the United States. It operates through three segments: Oil and Natural Gas, Contract Drilling, and Mid-Stream. The Oil and Natural Gas segment explores for, acquires, develops, and produces oil and natural gas properties. Its producing oil and natural gas properties, unproved properties, and related assets are primarily located in Oklahoma and Texas, as well as in Arkansas, Colorado, Kansas, Louisiana, Montana, New Mexico, North Dakota, Utah, and Wyoming. The Contract Drilling segment is involved in the contract drilling of onshore oil and natural gas wells for a range of other oil and natural gas companies primarily in Oklahoma, Texas, Wyoming, North Dakota, Colorado, and Utah. It has 55 drilling rigs in its fleet. The Mid-Stream segment buys, sells, gathers, processes, and treats natural gas for third parties. This segment operates 3 natural gas treatment plants, 14 processing plants, 22 gathering systems, and approximately 1,475 miles of pipeline in Oklahoma, Texas, Kansas, Pennsylvania, and West Virginia. Unit Corporation was founded in 1963 and is headquartered in Tulsa, Oklahoma.
Jones Energy Company Profile
Jones Energy, Inc., an independent oil and gas company, engages in the acquisition, exploration, development, and production of oil and natural gas properties in the mid-continent United States. It owns leasehold interests in oil and natural gas producing properties, as well as in undeveloped acreage located in the Anadarko Basin in Oklahoma and Texas. As of December 31, 2017, the company's total estimated proved reserves included 104.8 million barrels of oil equivalent. Jones Energy, Inc. was founded in 1988 and is headquartered in Austin, Texas.
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