Analyzing EXCO Resources NL (XCO) and WPX Energy (WPX)
EXCO Resources NL (NYSE: XCO) and WPX Energy (NYSE:WPX) are both oils/energy companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, dividends, institutional ownership, risk and earnings.
Earnings and Valuation
This table compares EXCO Resources NL and WPX Energy’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|EXCO Resources NL||$303.66 million||0.09||$104.21 million||$7.42||0.18|
|WPX Energy||$1.00 billion||4.58||$569.00 million||($0.83)||-13.86|
WPX Energy has higher revenue and earnings than EXCO Resources NL. WPX Energy is trading at a lower price-to-earnings ratio than EXCO Resources NL, indicating that it is currently the more affordable of the two stocks.
This table compares EXCO Resources NL and WPX Energy’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|EXCO Resources NL||47.81%||N/A||-2.58%|
This is a breakdown of recent ratings and price targets for EXCO Resources NL and WPX Energy, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|EXCO Resources NL||0||0||0||0||N/A|
WPX Energy has a consensus target price of $15.58, indicating a potential upside of 35.47%. Given WPX Energy’s higher probable upside, analysts plainly believe WPX Energy is more favorable than EXCO Resources NL.
Insider and Institutional Ownership
56.7% of EXCO Resources NL shares are held by institutional investors. Comparatively, 97.7% of WPX Energy shares are held by institutional investors. 2.0% of EXCO Resources NL shares are held by company insiders. Comparatively, 1.4% of WPX Energy shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Volatility & Risk
EXCO Resources NL has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500. Comparatively, WPX Energy has a beta of 2.39, meaning that its share price is 139% more volatile than the S&P 500.
WPX Energy beats EXCO Resources NL on 7 of the 12 factors compared between the two stocks.
About EXCO Resources NL
EXCO Resources, Inc. (EXCO) is an oil and natural gas company. The Company is engaged in the exploration, exploitation, acquisition, development and production of onshore United States oil and natural gas properties with a focus on shale resource plays. The Company’s principal operations are conducted in certain United States oil and natural gas areas, including Texas, Louisiana and the Appalachia region. The Company holds acreage positions in approximately three shale plays in the United States, including East Texas and North Louisiana, South Texas and Appalachia. In East Texas and North Louisiana, the Company holds approximately 83,800 net acres in the Haynesville and Bossier shales. In South Texas, it holds approximately 65,800 net acres in the Eagle Ford shale. In Appalachia, the Company holds approximately 137,400 net acres prospective in the Marcellus shale.
About WPX Energy
WPX Energy, Inc. is an oil and natural gas exploration and production company. The Company is engaged in the exploitation and development of unconventional properties. It operates in the exploration and production segment of the oil and gas industry and its operations are conducted in the United States. It is focused on exploiting, developing and growing its oil positions in the Delaware (a subset of the Permian Basin) and San Juan Basins in the southwestern United States and the Williston Basin in North Dakota. As of December 31, 2016, it operated 642 wells in the Delaware Basin and also owned interests in 783 wells operated by others. As of December 31, 2016, it held approximately 98,000 acres in the Delaware Basin, with operations located in Eddy, Lea and Chaves Counties in New Mexico and Loving, Pecos, Reeves, Ward and Winkler Counties in Texas. Its activity in the Delaware Basin is focused on the Wolfcamp Shale formation, the Bone Spring interval and the Delaware sand interval.
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