Financial Contrast: Jones Energy (JONE) and Its Peers

Jones Energy (NYSE: JONE) is one of 227 publicly-traded companies in the “Oil & Gas Exploration and Production” industry, but how does it contrast to its competitors? We will compare Jones Energy to related companies based on the strength of its analyst recommendations, valuation, earnings, dividends, profitability, institutional ownership and risk.

Earnings and Valuation

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

Gross Revenue Net Income Price/Earnings Ratio
Jones Energy $127.85 million -$42.55 million -0.44
Jones Energy Competitors $1.86 billion -$438.87 million -25.12

Jones Energy’s competitors have higher revenue, but lower earnings than Jones Energy. Jones Energy 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.

Volatility & Risk

Jones Energy has a beta of 2.63, suggesting that its share price is 163% more volatile than the S&P 500. Comparatively, Jones Energy’s competitors have a beta of 1.40, suggesting that their average share price is 40% more volatile than the S&P 500.

Insider and Institutional Ownership

59.3% of Jones Energy shares are owned by institutional investors. Comparatively, 59.3% of shares of all “Oil & Gas Exploration and Production” companies are owned by institutional investors. 37.2% of Jones Energy shares are owned by insiders. Comparatively, 13.0% of shares of all “Oil & Gas Exploration and Production” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Jones Energy and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Jones Energy 2 3 1 0 1.83
Jones Energy Competitors 1620 7849 12621 273 2.52

Jones Energy presently has a consensus target price of $1.90, suggesting a potential upside of 50.79%. As a group, “Oil & Gas Exploration and Production” companies have a potential upside of 20.30%. Given Jones Energy’s higher possible upside, equities analysts plainly believe Jones Energy is more favorable than its competitors.

Profitability

This table compares Jones Energy and its competitors’ 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 -271.56% 26.67% 5.97%

Summary

Jones Energy competitors beat Jones Energy on 7 of the 12 factors compared.

Jones Energy Company Profile

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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