Analyzing Callon Petroleum (CPE) & Its Peers

Callon Petroleum (NYSE: CPE) is one of 241 publicly-traded companies in the “Oil & Gas Exploration and Production” industry, but how does it compare to its rivals? We will compare Callon Petroleum to similar businesses based on the strength of its earnings, risk, analyst recommendations, dividends, profitability, institutional ownership and valuation.

Analyst Ratings

This is a breakdown of current ratings for Callon Petroleum and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Callon Petroleum 0 3 21 0 2.88
Callon Petroleum Competitors 1453 7557 12175 253 2.52

Callon Petroleum currently has a consensus target price of $17.57, suggesting a potential upside of 57.39%. As a group, “Oil & Gas Exploration and Production” companies have a potential upside of 33.71%. Given Callon Petroleum’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Callon Petroleum is more favorable than its rivals.

Institutional and Insider Ownership

61.7% of shares of all “Oil & Gas Exploration and Production” companies are held by institutional investors. 0.8% of Callon Petroleum shares are held by company insiders. Comparatively, 12.2% of shares of all “Oil & Gas Exploration and Production” companies are held by company 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.

Risk & Volatility

Callon Petroleum has a beta of 1.38, suggesting that its stock price is 38% more volatile than the S&P 500. Comparatively, Callon Petroleum’s rivals have a beta of 1.39, suggesting that their average stock price is 39% more volatile than the S&P 500.

Earnings & Valuation

This table compares Callon Petroleum and its rivals top-line revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Callon Petroleum $200.85 million -$91.81 million 25.36
Callon Petroleum Competitors $1.87 billion -$438.84 million -47.11

Callon Petroleum’s rivals have higher revenue, but lower earnings than Callon Petroleum. Callon Petroleum 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.

Profitability

This table compares Callon Petroleum and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Callon Petroleum 30.20% 4.05% 2.96%
Callon Petroleum Competitors -430.33% 12.32% 4.94%

Summary

Callon Petroleum rivals beat Callon Petroleum on 7 of the 13 factors compared.

About Callon Petroleum

Callon Petroleum Company is an independent oil and natural gas company. The Company is engaged in the exploration, development, acquisition and production of oil and natural gas properties. The Company focuses on the acquisition and development of unconventional oil and natural gas reserves in the Permian Basin. The Permian Basin is located in West Texas and southeastern New Mexico and consisted of three primary sub-basins: the Midland Basin, the Delaware Basin, and the Central Basin Platform as of December 31, 2016. The Company’s drilling activity focuses on the horizontal development of various prospective intervals in the Midland Basin, including multiple levels of the Wolfcamp formation and the Lower Spraberry shale. It owns additional immaterial properties in Louisiana. As of December 31, 2016, the Company had owned leaseholds in 39,570 net acres in the Permian Basin, all of which was located in the Midland Basin.

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