Head to Head Analysis: Concho Resources (CXO) & Its Competitors

Concho Resources (NYSE: CXO) is one of 240 public companies in the “Oil & Gas Exploration and Production” industry, but how does it compare to its rivals? We will compare Concho Resources to related businesses based on the strength of its earnings, dividends, profitability, risk, valuation, analyst recommendations and institutional ownership.

Insider & Institutional Ownership

92.4% of Concho Resources shares are held by institutional investors. Comparatively, 62.2% of shares of all “Oil & Gas Exploration and Production” companies are held by institutional investors. 1.0% of Concho Resources shares are held by insiders. Comparatively, 11.4% of shares of all “Oil & Gas Exploration and Production” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Concho Resources has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500. Comparatively, Concho Resources’ rivals have a beta of 1.41, meaning that their average share price is 41% more volatile than the S&P 500.

Profitability

This table compares Concho Resources and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Concho Resources 29.32% 2.76% 1.75%
Concho Resources Competitors -442.96% 1.53% 0.49%

Earnings and Valuation

This table compares Concho Resources and its rivals revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Concho Resources $2.10 billion $1.72 billion 29.60
Concho Resources Competitors $1.39 billion $598.28 million 21.12

Concho Resources has higher revenue and earnings than its rivals. Concho Resources 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.

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Concho Resources 0 8 10 0 2.56
Concho Resources Competitors 1572 7874 12175 268 2.51

Concho Resources presently has a consensus price target of $149.27, indicating a potential upside of 21.51%. As a group, “Oil & Gas Exploration and Production” companies have a potential upside of 45.50%. Given Concho Resources’ rivals higher possible upside, analysts clearly believe Concho Resources has less favorable growth aspects than its rivals.

Summary

Concho Resources beats its rivals on 8 of the 13 factors compared.

Concho Resources Company Profile

Concho Resources Inc. is an independent oil and natural gas company engaged in the acquisition, development and exploration of oil and natural gas properties. The Company’s four operating areas include the Northern Delaware Basin, the Southern Delaware Basin, the Midland Basin and the New Mexico Shelf. As of December 31, 2016, the Company’s operations were focused in the Permian Basin, which underlies an area of Southeast New Mexico and West Texas approximately 250 miles wide and 300 miles long. The Permian Basin is an oil and natural gas producing region in the United States and is characterized by multiple producing horizons and enhanced recovery potential. As of December 31, 2016, the Company produced approximately 55.1 million barrels of oil equivalent (MMBoe) of oil and natural gas. As of December 31, 2016, all of its 720 MMBoe total estimated proved reserves were located in its core operating areas and consisted of approximately 59.5% oil and 40.5% natural gas.

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