Contrasting Newfield Exploration (NYSE:NFX) and Its Peers

Newfield Exploration (NYSE: NFX) is one of 250 publicly-traded companies in the “Oil & Gas Exploration and Production” industry, but how does it compare to its competitors? We will compare Newfield Exploration to similar companies based on the strength of its profitability, earnings, analyst recommendations, dividends, valuation, institutional ownership and risk.

Volatility and Risk

Newfield Exploration has a beta of 1.47, meaning that its share price is 47% more volatile than the S&P 500. Comparatively, Newfield Exploration’s competitors have a beta of 1.30, meaning that their average share price is 30% more volatile than the S&P 500.

Institutional & Insider Ownership

98.8% of Newfield Exploration shares are held by institutional investors. Comparatively, 61.2% of shares of all “Oil & Gas Exploration and Production” companies are held by institutional investors. 0.5% of Newfield Exploration shares are held by insiders. Comparatively, 12.1% of shares of all “Oil & Gas Exploration and Production” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Newfield Exploration and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Newfield Exploration $1.47 billion -$1.23 billion 19.25
Newfield Exploration Competitors $1.89 billion -$443.16 million 22.49

Newfield Exploration’s competitors have higher revenue and earnings than Newfield Exploration. Newfield Exploration 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.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Newfield Exploration and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Newfield Exploration 1 6 17 0 2.67
Newfield Exploration Competitors 1493 7737 12249 266 2.52

Newfield Exploration currently has a consensus price target of $38.75, indicating a potential upside of 16.33%. As a group, “Oil & Gas Exploration and Production” companies have a potential upside of 32.69%. Given Newfield Exploration’s competitors higher probable upside, analysts clearly believe Newfield Exploration has less favorable growth aspects than its competitors.

Profitability

This table compares Newfield Exploration and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Newfield Exploration 20.62% 35.28% 8.89%
Newfield Exploration Competitors -443.57% -3.39% 2.75%

Summary

Newfield Exploration beats its competitors on 7 of the 13 factors compared.

Newfield Exploration Company Profile

Newfield Exploration Company is an independent exploration and production company. It is engaged in the exploration, development and production of crude oil, natural gas and natural gas liquids. Its operating segments are the United States and China. Its the United States operations are onshore and focus primarily on large scale, liquids resource plays. Its principal areas of operation are the Anadarko and Arkoma basins of Oklahoma, the Williston Basin of North Dakota and the Uinta Basin of Utah. It has oil producing assets offshore China. As of December 31, 2016, its proved reserves of 513 million barrels of oil equivalents (MMBOE) consisted of 304 MMBOE proved developed producing, 10 MMBOE proved developed non-producing and 199 MMBOE proved undeveloped reserves. As of December 31, 2016, its proved liquids reserves were 285 million barrels of crude oil or other liquid hydrocarbons. As of December 31, 2016, 67% of its proved liquids reserves were crude oil or condensate.

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