Centennial Resource Development (NASDAQ:CDEV) vs. Its Peers Head-To-Head Survey

Centennial Resource Development (NASDAQ: CDEV) is one of 20 public companies in the “Integrated Oil & Gas” industry, but how does it compare to its competitors? We will compare Centennial Resource Development to related companies based on the strength of its dividends, earnings, risk, institutional ownership, profitability, valuation and analyst recommendations.

Profitability

This table compares Centennial Resource Development and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Centennial Resource Development -49.20% -5.52% -5.19%
Centennial Resource Development Competitors -7.55% 2.33% 0.99%

Institutional & Insider Ownership

93.4% of Centennial Resource Development shares are held by institutional investors. Comparatively, 40.5% of shares of all “Integrated Oil & Gas” companies are held by institutional investors. 44.7% of Centennial Resource Development shares are held by company insiders. Comparatively, 9.8% of shares of all “Integrated Oil & Gas” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings for Centennial Resource Development and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Centennial Resource Development 0 1 15 0 2.94
Centennial Resource Development Competitors 222 682 802 31 2.37

Centennial Resource Development currently has a consensus target price of $22.71, suggesting a potential upside of 11.95%. As a group, “Integrated Oil & Gas” companies have a potential upside of 14.97%. Given Centennial Resource Development’s competitors higher possible upside, analysts plainly believe Centennial Resource Development has less favorable growth aspects than its competitors.

Valuation and Earnings

This table compares Centennial Resource Development and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Centennial Resource Development $98.83 million -$226.80 million -17.80
Centennial Resource Development Competitors $78.29 billion $113.43 million -202.76

Centennial Resource Development’s competitors have higher revenue and earnings than Centennial Resource Development. Centennial Resource Development 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.

Summary

Centennial Resource Development competitors beat Centennial Resource Development on 7 of the 12 factors compared.

Centennial Resource Development Company Profile

Centennial Resource Development, Inc. is an independent oil and natural gas company. The Company is focused on the development of unconventional oil and associated liquids-rich natural gas reserves in the Permian Basin. The Company’s assets are concentrated in the Delaware Basin, a sub-basin of the Permian Basin. Its properties consist of large, contiguous acreage blocks in Reeves, Ward and Pecos counties in West Texas. As of December 31, 2016, the Company held approximately 92% membership interest in Centennial Resource Production, LLC (CRP). As of December 31, 2016, its portfolio included 106 operated producing horizontal wells. The horizontal wells span an area of approximately 45 miles long by 20 miles wide where it had commercial production in five zones: the 3rd Bone Spring Sandstone, Upper Wolfcamp A, Lower Wolfcamp A, Wolfcamp B and Wolfcamp C.

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