Head to Head Review: QEP Resources (QEP) versus Its Peers

QEP Resources (NYSE: QEP) is one of 20 public companies in the “Integrated Oil & Gas” industry, but how does it weigh in compared to its competitors? We will compare QEP Resources to similar businesses based on the strength of its analyst recommendations, institutional ownership, valuation, profitability, dividends, risk and earnings.

Profitability

This table compares QEP Resources and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
QEP Resources -0.90% -3.48% -1.72%
QEP Resources Competitors -8.74% 2.71% 1.12%

Risk and Volatility

QEP Resources has a beta of 1.7, suggesting that its stock price is 70% more volatile than the S&P 500. Comparatively, QEP Resources’ competitors have a beta of 1.35, suggesting that their average stock price is 35% more volatile than the S&P 500.

Insider and Institutional Ownership

89.5% of QEP Resources shares are owned by institutional investors. Comparatively, 39.2% of shares of all “Integrated Oil & Gas” companies are owned by institutional investors. 1.4% of QEP Resources shares are owned by company insiders. Comparatively, 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 will outperform the market over the long term.

Earnings and Valuation

This table compares QEP Resources and its competitors revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
QEP Resources $1.38 billion -$1.25 billion -146.67
QEP Resources Competitors $78.29 billion $113.43 million -194.15

QEP Resources’ competitors have higher revenue and earnings than QEP Resources. QEP Resources is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for QEP Resources and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
QEP Resources 0 7 8 1 2.63
QEP Resources Competitors 216 669 781 31 2.37

QEP Resources presently has a consensus price target of $14.43, suggesting a potential upside of 63.96%. As a group, “Integrated Oil & Gas” companies have a potential upside of 25.36%. Given QEP Resources’ stronger consensus rating and higher possible upside, equities analysts clearly believe QEP Resources is more favorable than its competitors.

Summary

QEP Resources beats its competitors on 7 of the 12 factors compared.

About QEP Resources

QEP Resources, Inc. is an independent crude oil and natural gas exploration and production company. The Company focuses on two regions of the United States: the Northern Region (primarily in North Dakota, Wyoming and Utah) and the Southern Region (primarily in Texas and Louisiana). The Company conducts exploration and production activities in North America’s hydrocarbon resource plays. The Company has an inventory of developed and undeveloped drilling locations in the Permian Basin in western Texas, the Williston Basin in North Dakota, Haynesville/Cotton Valley in northwestern Louisiana, the Uinta Basin in eastern Utah and other properties in Wyoming, Utah and Colorado. It sells gas volumes to wholesale marketers, industrial users, local distribution companies and utilities. It sells oil and natural gas liquid (NGL) volumes to refiners, marketers and other companies.

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