Head to Head Survey: Legacy Reserves (LGCY) vs. Its Competitors

Legacy Reserves (NASDAQ: LGCY) is one of 246 publicly-traded companies in the “Oil & Gas Exploration and Production” industry, but how does it weigh in compared to its competitors? We will compare Legacy Reserves to similar companies based on the strength of its earnings, profitability, institutional ownership, dividends, risk, analyst recommendations and valuation.

Earnings & Valuation

This table compares Legacy Reserves and its competitors revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Legacy Reserves $367.53 million $160.94 million -0.90
Legacy Reserves Competitors $1.39 billion $598.77 million 17.44

Legacy Reserves’ competitors have higher revenue and earnings than Legacy Reserves. Legacy Reserves 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

Legacy Reserves has a beta of 2.5, meaning that its share price is 150% more volatile than the S&P 500. Comparatively, Legacy Reserves’ competitors have a beta of 1.42, meaning that their average share price is 42% more volatile than the S&P 500.

Profitability

This table compares Legacy Reserves and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Legacy Reserves -28.19% N/A -1.59%
Legacy Reserves Competitors -432.42% -8.58% 1.94%

Institutional and Insider Ownership

20.6% of Legacy Reserves shares are held by institutional investors. Comparatively, 61.5% of shares of all “Oil & Gas Exploration and Production” companies are held by institutional investors. 26.7% of Legacy Reserves shares are held by company insiders. Comparatively, 12.0% of shares of all “Oil & Gas Exploration and Production” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current recommendations and price targets for Legacy Reserves and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Legacy Reserves 1 2 0 0 1.67
Legacy Reserves Competitors 1445 7493 12133 257 2.53

Legacy Reserves presently has a consensus target price of $1.88, indicating a potential upside of 22.29%. As a group, “Oil & Gas Exploration and Production” companies have a potential upside of 36.61%. Given Legacy Reserves’ competitors stronger consensus rating and higher possible upside, analysts plainly believe Legacy Reserves has less favorable growth aspects than its competitors.

Summary

Legacy Reserves competitors beat Legacy Reserves on 8 of the 12 factors compared.

Legacy Reserves Company Profile

Legacy Reserves LP (Legacy) is a master limited partnership company. The Company focuses on the acquisition and development of oil and natural gas properties located in the Permian Basin, East Texas, Rocky Mountain and Mid-Continent regions of the United States. As of December 31, 2016, the Company had proved reserves of approximately 144.8 million barrels of crude oil equivalent (MMBoe), of which 72% were natural gas, 28% were oil and natural gas liquids (NGLs) and 94% were classified as proved developed producing. As of December 31, 2016, the Company owned interests in producing oil and natural gas properties in 627 fields in the Permian Basin, East Texas, Piceance Basin of Colorado, Texas Panhandle, Wyoming, North Dakota, Montana, Oklahoma and various other states, from 10,775 gross productive wells, of which 3,799 were operated and 6,976 were non-operated. The Company’s fields and regions include East Texas, Piceance Basin, Spraberry/War San, Lea, Texas Panhandle and Deep Rock.

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