Paramount Resources (PRMRF) versus Its Rivals Critical Analysis

Paramount Resources (OTCMKTS:PRMRF) is one of 1,051 public companies in the “Oil, Gas & Consumable Fuels” industry, but how does it compare to its competitors? We will compare Paramount Resources to similar companies based on the strength of its earnings, valuation, dividends, risk, institutional ownership, analyst recommendations and profitability.

Profitability

This table compares Paramount Resources and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Paramount Resources	-24.64%	5.02%	3.69%
Paramount Resources Competitors	-455.74%	19.71%	6.77%

Institutional & Insider Ownership

4.1% of Paramount Resources shares are owned by institutional investors. Comparatively, 30.7% of shares of all “Oil, Gas & Consumable Fuels” companies are owned by institutional investors. 36.3% of Paramount Resources shares are owned by insiders. Comparatively, 15.5% of shares of all “Oil, Gas & Consumable Fuels” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations for Paramount Resources and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Paramount Resources	0	1	4	3	3.25
Paramount Resources Competitors	5989	27023	40896	2428	2.52

As a group, “Oil, Gas & Consumable Fuels” companies have a potential upside of 28.06%. Given Paramount Resources’ competitors higher possible upside, analysts plainly believe Paramount Resources has less favorable growth aspects than its competitors.

Dividends

Paramount Resources pays an annual dividend of $0.42 per share and has a dividend yield of 1.9%. Paramount Resources pays out -32.1% of its earnings in the form of a dividend. As a group, “Oil, Gas & Consumable Fuels” companies pay a dividend yield of 9.1% and pay out -135.5% of their earnings in the form of a dividend. Paramount Resources lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.

Valuation & Earnings

This table compares Paramount Resources and its competitors revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Paramount Resources	$692.73 million	$922.32 million	-17.24
Paramount Resources Competitors	$14.85 billion	$5.51 billion	-1.08

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

Volatility and Risk

Paramount Resources has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500. Comparatively, Paramount Resources’ competitors have a beta of -3.76, suggesting that their average share price is 476% less volatile than the S&P 500.

Summary

Paramount Resources competitors beat Paramount Resources on 9 of the 15 factors compared.

About Paramount Resources

Paramount Resources Ltd. is a Canadian energy company focused on the exploration, development and production of natural gas, crude oil and natural gas liquids. Its operations also include infrastructure that supports the gathering and processing of its production. The company’s activities are concentrated in Western Canada, particularly in Alberta and British Columbia, where it develops resources in areas including the Montney, Deep Basin and Duvernay. Paramount traces its history to 1976 and is headquartered in Calgary, Alberta.