Critical Analysis: Ovintiv (OVV) versus Its Rivals

Ovintiv (NYSE: OVV) is one of 184 public companies in the “Crude petroleum & natural gas” industry, but how does it compare to its peers? We will compare Ovintiv to related businesses based on the strength of its dividends, risk, earnings, profitability, analyst recommendations, valuation and institutional ownership.

Profitability

This table compares Ovintiv and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ovintiv 3.48% 8.52% 3.98%
Ovintiv Competitors -9.03% -1.99% 4.93%

Earnings & Valuation

This table compares Ovintiv and its peers gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Ovintiv $6.73 billion $234.00 million 3.51
Ovintiv Competitors $10.14 billion $686.21 million 5.32

Ovintiv’s peers have higher revenue and earnings than Ovintiv. Ovintiv is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Volatility and Risk

Ovintiv has a beta of 2.07, indicating that its stock price is 107% more volatile than the S&P 500. Comparatively, Ovintiv’s peers have a beta of 1.93, indicating that their average stock price is 93% more volatile than the S&P 500.

Dividends

Ovintiv pays an annual dividend of $0.38 per share and has a dividend yield of 3.3%. Ovintiv pays out 11.6% of its earnings in the form of a dividend. As a group, “Crude petroleum & natural gas” companies pay a dividend yield of 3.8% and pay out 42.3% of their earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Ovintiv and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ovintiv 0 7 5 0 2.42
Ovintiv Competitors 2397 9194 12811 429 2.45

Ovintiv currently has a consensus target price of $25.40, indicating a potential upside of 119.88%. As a group, “Crude petroleum & natural gas” companies have a potential upside of 75.11%. Given Ovintiv’s higher possible upside, research analysts clearly believe Ovintiv is more favorable than its peers.

Institutional and Insider Ownership

56.8% of shares of all “Crude petroleum & natural gas” companies are owned by institutional investors. 0.1% of Ovintiv shares are owned by insiders. Comparatively, 11.3% of shares of all “Crude petroleum & natural gas” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Ovintiv peers beat Ovintiv on 9 of the 15 factors compared.

About Ovintiv

There is no company description available for Ovintiv Inc.

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