Concho Resources (NYSE: CXO) is one of 245 public companies in the “Oil & Gas Exploration and Production” industry, but how does it compare to its peers? We will compare Concho Resources to similar businesses based on the strength of its risk, valuation, profitability, dividends, analyst recommendations, earnings and institutional ownership.

Risk and Volatility

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.

Earnings and Valuation

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 32.70
Concho Resources Competitors $1.42 billion $613.49 million 20.48

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.

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 company insiders. Comparatively, 11.8% of shares of all “Oil & Gas Exploration and Production” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

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 29.32% 2.76% 1.75%
Concho Resources Competitors -435.50% 4.14% 1.39%

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Concho Resources and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Concho Resources 0 7 10 0 2.59
Concho Resources Competitors 1416 7361 11935 253 2.53

Concho Resources presently has a consensus price target of $147.27, indicating a potential upside of 8.52%. As a group, “Oil & Gas Exploration and Production” companies have a potential upside of 36.66%. Given Concho Resources’ peers higher probable upside, analysts plainly believe Concho Resources has less favorable growth aspects than its peers.

Summary

Concho Resources beats its peers on 8 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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