Comparing Petroquest Energy (PQUE) & Laredo Petroleum (LPI)

Petroquest Energy (NYSE: LPI) and Laredo Petroleum (NYSE:LPI) are both small-cap oils/energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, valuation, risk, earnings, analyst recommendations, dividends and institutional ownership.

Profitability

This table compares Petroquest Energy and Laredo Petroleum’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Petroquest Energy -2.87% N/A -2.23%
Laredo Petroleum 51.05% 25.80% 9.27%

Earnings and Valuation

This table compares Petroquest Energy and Laredo Petroleum’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Petroquest Energy $108.29 million 0.02 -$6.63 million ($0.55) -0.16
Laredo Petroleum $822.16 million 2.34 $548.97 million $0.60 13.62

Laredo Petroleum has higher revenue and earnings than Petroquest Energy. Petroquest Energy is trading at a lower price-to-earnings ratio than Laredo Petroleum, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Petroquest Energy has a beta of 1.7, suggesting that its share price is 70% more volatile than the S&P 500. Comparatively, Laredo Petroleum has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Petroquest Energy and Laredo Petroleum, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Petroquest Energy 0 1 0 0 2.00
Laredo Petroleum 2 11 4 0 2.12

Laredo Petroleum has a consensus target price of $12.17, indicating a potential upside of 48.92%. Given Laredo Petroleum’s stronger consensus rating and higher possible upside, analysts clearly believe Laredo Petroleum is more favorable than Petroquest Energy.

Insider & Institutional Ownership

4.2% of Petroquest Energy shares are held by institutional investors. 8.8% of Petroquest Energy shares are held by insiders. Comparatively, 2.2% of Laredo Petroleum shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Laredo Petroleum beats Petroquest Energy on 11 of the 14 factors compared between the two stocks.

About Petroquest Energy

PetroQuest Energy, Inc. operates as an independent oil and gas company in Texas and Louisiana. The company acquires, explores for, develops, and operates oil and gas properties. As of December 31, 2017, it had estimated proved reserves of 1.8 million barrels of oil; 19.4 billion cubic feet equivalent of natural gas liquids; and 125.4 billion cubic feet of natural gas. PetroQuest Energy, Inc. was founded in 1983 and is headquartered in Lafayette, Louisiana.

About Laredo Petroleum

Laredo Petroleum, Inc. operates as an independent energy company in the United States. It operates through two segments, Exploration and Production; and Midstream and Marketing. The company engages in the acquisition, exploration, and development of oil and natural gas properties; and the transportation of oil and natural gas primarily in the Permian Basin in West Texas, as well as rig fuel, natural gas lift, and water delivery and takeaway services. As of December 31, 2017, it had assembled 124,843 net acres in the Permian Basin; and had total proved reserves of 215,883 thousand barrels of oil equivalent. The company was formerly known as Laredo Petroleum Holdings, Inc. and changed its name to Laredo Petroleum, Inc. in December 2013. Laredo Petroleum, Inc. was founded in 2006 and is headquartered in Tulsa, Oklahoma.

Receive News & Ratings for Petroquest Energy Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Petroquest Energy and related companies with MarketBeat.com's FREE daily email newsletter.


Leave a Reply