Critical Survey: Newfield Exploration (NFX) & Its Peers

Newfield Exploration (NYSE: NFX) is one of 246 public companies in the “Oil & Gas Exploration and Production” industry, but how does it weigh in compared to its competitors? We will compare Newfield Exploration to similar businesses based on the strength of its valuation, institutional ownership, profitability, dividends, risk, analyst recommendations and earnings.

Risk and Volatility

Newfield Exploration has a beta of 1.53, indicating that its share price is 53% more volatile than the S&P 500. Comparatively, Newfield Exploration’s competitors have a beta of 1.42, indicating that their average share price is 42% more volatile than the S&P 500.

Profitability

This table compares Newfield Exploration and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Newfield Exploration 18.82% 33.17% 7.88%
Newfield Exploration Competitors -427.12% -1.24% 1.83%

Analyst Recommendations

This is a summary of current ratings and target prices for Newfield Exploration and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Newfield Exploration 1 6 17 0 2.67
Newfield Exploration Competitors 1440 7458 12082 255 2.53

Newfield Exploration currently has a consensus target price of $39.30, indicating a potential upside of 30.05%. As a group, “Oil & Gas Exploration and Production” companies have a potential upside of 37.27%. Given Newfield Exploration’s competitors higher possible upside, analysts plainly believe Newfield Exploration has less favorable growth aspects than its competitors.

Earnings and Valuation

This table compares Newfield Exploration and its competitors revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Newfield Exploration $1.63 billion $903.00 million 19.75
Newfield Exploration Competitors $1.42 billion $613.46 million 20.56

Newfield Exploration has higher revenue and earnings than its competitors. Newfield Exploration is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Institutional & Insider Ownership

99.2% of Newfield Exploration shares are held by institutional investors. Comparatively, 63.0% of shares of all “Oil & Gas Exploration and Production” companies are held by institutional investors. 0.5% of Newfield Exploration shares are held by insiders. Comparatively, 11.9% of shares of all “Oil & Gas Exploration and Production” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Newfield Exploration beats its competitors on 9 of the 13 factors compared.

Newfield Exploration Company Profile

Newfield Exploration Company is an independent exploration and production company. It is engaged in the exploration, development and production of crude oil, natural gas and natural gas liquids. Its operating segments are the United States and China. Its the United States operations are onshore and focus primarily on large scale, liquids resource plays. Its principal areas of operation are the Anadarko and Arkoma basins of Oklahoma, the Williston Basin of North Dakota and the Uinta Basin of Utah. It has oil producing assets offshore China. As of December 31, 2016, its proved reserves of 513 million barrels of oil equivalents (MMBOE) consisted of 304 MMBOE proved developed producing, 10 MMBOE proved developed non-producing and 199 MMBOE proved undeveloped reserves. As of December 31, 2016, its proved liquids reserves were 285 million barrels of crude oil or other liquid hydrocarbons. As of December 31, 2016, 67% of its proved liquids reserves were crude oil or condensate.

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