Critical Analysis: RSP Permian (RSPP) versus Its Competitors

RSP Permian (NYSE: RSPP) is one of 228 public companies in the “Oil & Gas Exploration and Production” industry, but how does it weigh in compared to its rivals? We will compare RSP Permian to related businesses based on the strength of its institutional ownership, analyst recommendations, risk, dividends, valuation, profitability and earnings.

Profitability

This table compares RSP Permian and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
RSP Permian 13.69% 2.32% 1.61%
RSP Permian Competitors -421.95% 25.26% 6.67%

Earnings & Valuation

This table compares RSP Permian and its rivals gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
RSP Permian $353.86 million -$24.85 million 59.57
RSP Permian Competitors $1.86 billion -$439.03 million -27.52

RSP Permian’s rivals have higher revenue, but lower earnings than RSP Permian. RSP Permian is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Volatility & Risk

RSP Permian has a beta of 2.15, suggesting that its stock price is 115% more volatile than the S&P 500. Comparatively, RSP Permian’s rivals have a beta of 1.38, suggesting that their average stock price is 38% more volatile than the S&P 500.

Institutional & Insider Ownership

86.2% of RSP Permian shares are held by institutional investors. Comparatively, 61.8% of shares of all “Oil & Gas Exploration and Production” companies are held by institutional investors. 15.0% of RSP Permian shares are held by insiders. Comparatively, 12.6% of shares of all “Oil & Gas Exploration and Production” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for RSP Permian and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
RSP Permian 0 1 21 1 3.00
RSP Permian Competitors 1470 7693 12410 257 2.52

RSP Permian currently has a consensus price target of $47.05, indicating a potential upside of 29.46%. As a group, “Oil & Gas Exploration and Production” companies have a potential upside of 39.22%. Given RSP Permian’s rivals higher possible upside, analysts plainly believe RSP Permian has less favorable growth aspects than its rivals.

Summary

RSP Permian beats its rivals on 9 of the 13 factors compared.

About RSP Permian

RSP Permian, Inc. is an independent oil and natural gas company. The Company is engaged in the acquisition, exploration, development and production of unconventional oil and associated liquids-rich natural gas reserves in the Permian Basin of West Texas. The Company’s properties are located on contiguous acreage blocks in the Midland Basin, and the Delaware Basin, both sub-basins of the Permian Basin. The Midland Basin properties are primarily in the adjacent counties of Midland, Martin, Andrews, Ector, Glasscock and Dawson. The Delaware Basin properties are in Loving and Winkler counties. The Company has drilled Lower Spraberry horizontal well and a Middle Spraberry horizontal well in the Permian Basin. In addition, it has also drilled a Wolfcamp B horizontal well in the North Midland Basin.

Receive News & Ratings for RSP Permian Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for RSP Permian Inc. and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply