Laredo Petroleum (NYSE: LPI) is one of 246 publicly-traded companies in the “Oil & Gas Exploration and Production” industry, but how does it contrast to its peers? We will compare Laredo Petroleum to related companies based on the strength of its institutional ownership, dividends, analyst recommendations, risk, profitability, valuation and earnings.

Analyst Ratings

This is a summary of current recommendations and price targets for Laredo Petroleum and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Laredo Petroleum 2 8 8 0 2.33
Laredo Petroleum Competitors 1418 7373 11960 253 2.53

Laredo Petroleum presently has a consensus price target of $14.70, suggesting a potential upside of 17.85%. As a group, “Oil & Gas Exploration and Production” companies have a potential upside of 37.27%. Given Laredo Petroleum’s peers stronger consensus rating and higher possible upside, analysts plainly believe Laredo Petroleum has less favorable growth aspects than its peers.

Profitability

This table compares Laredo Petroleum and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Laredo Petroleum 16.73% 49.15% 6.36%
Laredo Petroleum Competitors -437.52% -2.67% 0.90%

Earnings and Valuation

This table compares Laredo Petroleum and its peers top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Laredo Petroleum $720.06 million $195.80 million 25.45
Laredo Petroleum Competitors $1.42 billion $613.46 million 20.11

Laredo Petroleum’s peers have higher revenue and earnings than Laredo Petroleum. Laredo Petroleum 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.

Institutional and Insider Ownership

61.2% of shares of all “Oil & Gas Exploration and Production” companies are held by institutional investors. 1.4% of Laredo Petroleum shares are held by company insiders. Comparatively, 11.8% of shares of all “Oil & Gas Exploration and Production” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk and Volatility

Laredo Petroleum has a beta of 1.45, indicating that its stock price is 45% more volatile than the S&P 500. Comparatively, Laredo Petroleum’s peers have a beta of 1.42, indicating that their average stock price is 42% more volatile than the S&P 500.

Summary

Laredo Petroleum peers beat Laredo Petroleum on 8 of the 13 factors compared.

About Laredo Petroleum

Laredo Petroleum, Inc. (Laredo) is an independent energy company. The Company is focused on the acquisition, exploration and development of oil and natural gas properties, and the transportation of oil and natural gas from such properties primarily in the Permian Basin in West Texas. It operates through two segments: Exploration and production of oil and natural gas properties, and Midstream and marketing. The exploration and production of oil and natural gas properties are conducted by it through the exploration and development of its acreage in the Permian Basin. As of December 31, 2016, it had assembled 127,847 net acres in the Permian Basin and had total proved reserves, presented on a three-stream basis, of 167,100 thousand of barrels of oil equivalent (MBOE). The Midstream and marketing segment’s operations are conducted by its subsidiary, Laredo Midstream Services, LLC, which buys, sells, gathers and transports oil, natural gas and water primarily for the account of Laredo.

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