PDC Energy (PDCE) & Its Peers Critical Contrast

PDC Energy (NASDAQ: PDCE) is one of 235 publicly-traded companies in the “Oil & Gas Exploration and Production” industry, but how does it weigh in compared to its competitors? We will compare PDC Energy to related businesses based on the strength of its valuation, dividends, earnings, institutional ownership, risk, profitability and analyst recommendations.

Institutional & Insider Ownership

61.7% of shares of all “Oil & Gas Exploration and Production” companies are owned by institutional investors. 0.9% of PDC Energy shares are owned by company insiders. Comparatively, 12.2% of shares of all “Oil & Gas Exploration and Production” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares PDC Energy and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PDC Energy -29.31% 0.94% 0.54%
PDC Energy Competitors -459.09% 19.27% 5.43%

Analyst Recommendations

This is a summary of current ratings and target prices for PDC Energy and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PDC Energy 0 10 14 0 2.58
PDC Energy Competitors 1448 7591 12180 257 2.52

PDC Energy currently has a consensus target price of $68.81, indicating a potential upside of 42.73%. As a group, “Oil & Gas Exploration and Production” companies have a potential upside of 34.58%. Given PDC Energy’s stronger consensus rating and higher possible upside, analysts plainly believe PDC Energy is more favorable than its competitors.

Earnings and Valuation

This table compares PDC Energy and its competitors revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
PDC Energy $382.92 million -$245.92 million -11.87
PDC Energy Competitors $1.87 billion -$438.84 million -49.51

PDC Energy’s competitors have higher revenue, but lower earnings than PDC Energy. PDC Energy 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.

Risk & Volatility

PDC Energy has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500. Comparatively, PDC Energy’s competitors have a beta of 1.37, suggesting that their average share price is 37% more volatile than the S&P 500.

Summary

PDC Energy competitors beat PDC Energy on 7 of the 13 factors compared.

About PDC Energy

PDC Energy, Inc. is an independent exploration and production company. The Company produces, develops, acquires and explores for crude oil, natural gas and natural gas liquids (NGLs) with operations in the Wattenberg Field in Colorado and the Utica Shale in southeastern Ohio. The Company operates through two segments: Oil and Gas Exploration and Production, and Gas Marketing. The Company’s Oil and Gas Exploration and Production segment includes all of its crude oil and natural gas properties. The Company’s Gas Marketing segment purchases, aggregates and resells natural gas. The Company’s operations in the Wattenberg Field are focused on the horizontal Niobrara and Codell plays. Its Delaware Basin operations are focused in the Wolfcamp zones and its Ohio operations are focused in the Utica Shale play. As of December 31, 2016, the Company owned an interest in approximately 2,900 productive gross wells.

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