Jones Energy (JONE) and The Competition Critical Survey

Jones Energy (NYSE: JONE) is one of 231 publicly-traded companies in the “Oil & Gas Exploration and Production” industry, but how does it contrast to its peers? We will compare Jones Energy to related companies based on the strength of its dividends, profitability, institutional ownership, risk, earnings, valuation and analyst recommendations.

Volatility and Risk

Jones Energy has a beta of 2.63, suggesting that its stock price is 163% more volatile than the S&P 500. Comparatively, Jones Energy’s peers have a beta of 1.39, suggesting that their average stock price is 39% more volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Jones Energy -105.90% -0.80% -0.35%
Jones Energy Competitors -298.09% 25.59% 5.48%

Insider & Institutional Ownership

59.3% of Jones Energy shares are held by institutional investors. Comparatively, 61.4% of shares of all “Oil & Gas Exploration and Production” companies are held by institutional investors. 37.2% of Jones Energy shares are held by company insiders. Comparatively, 12.4% of shares of all “Oil & Gas Exploration and Production” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Jones Energy and its peers top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Jones Energy $127.85 million -$42.55 million -0.43
Jones Energy Competitors $1.86 billion -$438.87 million -18.63

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

Analyst Ratings

This is a summary of current ratings and recommmendations for Jones Energy and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Jones Energy 2 3 1 0 1.83
Jones Energy Competitors 1617 7821 12662 272 2.52

Jones Energy presently has a consensus target price of $1.90, indicating a potential upside of 55.74%. As a group, “Oil & Gas Exploration and Production” companies have a potential upside of 17.33%. Given Jones Energy’s higher probable upside, equities analysts clearly believe Jones Energy is more favorable than its peers.

Summary

Jones Energy peers beat Jones Energy on 7 of the 13 factors compared.

About Jones Energy

Jones Energy, Inc. is an independent oil and gas company engaged in the exploration, development, production and acquisition of oil and natural gas properties. The Company’s assets are located within the Anadarko and Arkoma basins of Texas and Oklahoma. It owns leasehold interests in oil and natural gas producing properties, as well as in undeveloped acreage, located in the Anadarko and Arkoma basins in Texas and Oklahoma. The Company’s oil is generally sold under short-term, extendable and cancellable agreements with unaffiliated purchasers. The Company’s natural gas is sold at delivery points at or near producing wells to natural gas gathering and marketing companies. Its total estimated proved reserves are approximately 101.7 million barrels of oil equivalent (MMBoe). Approximately 25% of its total estimated proved reserves consist of oil, over 32% consist of natural gas liquids (NGLs) and over 43% consist of natural gas. Its properties include over 1,020 gross producing wells.

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