Ecopetrol (NYSE: EC) is one of 23 public companies in the “Integrated Oil & Gas” industry, but how does it compare to its peers? We will compare Ecopetrol to related businesses based on the strength of its risk, institutional ownership, profitability, analyst recommendations, dividends, earnings and valuation.

Analyst Ratings

This is a breakdown of recent ratings for Ecopetrol and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ecopetrol 0 3 2 0 2.40
Ecopetrol Competitors 215 650 769 31 2.37

Ecopetrol presently has a consensus target price of $10.33, suggesting a potential upside of 5.01%. As a group, “Integrated Oil & Gas” companies have a potential upside of 39.29%. Given Ecopetrol’s peers higher possible upside, analysts clearly believe Ecopetrol has less favorable growth aspects than its peers.

Insider & Institutional Ownership

2.1% of Ecopetrol shares are owned by institutional investors. Comparatively, 41.3% of shares of all “Integrated Oil & Gas” companies are owned by institutional investors. 9.8% of shares of all “Integrated Oil & Gas” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

Ecopetrol has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500. Comparatively, Ecopetrol’s peers have a beta of 1.39, meaning that their average share price is 39% more volatile than the S&P 500.

Valuation and Earnings

This table compares Ecopetrol and its peers top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Ecopetrol $17.94 billion $6.95 billion 22.36
Ecopetrol Competitors $52.35 billion $11.11 billion 1.60

Ecopetrol’s peers have higher revenue and earnings than Ecopetrol. Ecopetrol 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Ecopetrol 5.04% 3.60% 1.34%
Ecopetrol Competitors -6.47% 1.31% 0.70%

Dividends

Ecopetrol pays an annual dividend of $0.16 per share and has a dividend yield of 1.6%. Ecopetrol pays out 36.4% of its earnings in the form of a dividend. As a group, “Integrated Oil & Gas” companies pay a dividend yield of 3.0% and pay out 257.7% of their earnings in the form of a dividend.

Summary

Ecopetrol peers beat Ecopetrol on 9 of the 15 factors compared.

About Ecopetrol

Ecopetrol S.A. is an oil company. The Company operates in Colombia, Peru, Brazil and the United States Gulf Coast. The Company’s segments include Exploration and Production, Transportation and Logistics, and Refining, Petrochemicals and Biofuels. The Company’s Exploration and Production segment includes exploration, development and production activities in Colombia and abroad. The Company’s Transportation and Logistics segment includes the transportation of crude oil, motor fuels, fuel oil and other refined products, including diesel and biofuels. The Company’s main crude oil pipeline systems’ operating capacity is approximately 1.34 million barrels per day (BPD). The Company’s main refineries are the Barrancabermeja refinery, which it directly owns and operates, and a refinery in the Free Trade Zone in Cartagena that is operated by Reficar S.A., a subsidiary of the Company. The Company also owns and operates two other minor refineries: Orito and Apiay.

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