InterOil (NYSE: IOC) and CENTENNIAL RES (NASDAQ:CDEV) are both energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, earnings, risk, valuation, profitabiliy and analyst recommendations.

Profitability

This table compares InterOil and CENTENNIAL RES’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
InterOil -233.48% -14.08% -8.85%
CENTENNIAL RES N/A -15.50% -12.60%

Risk & Volatility

InterOil has a beta of 1.67, suggesting that its stock price is 67% more volatile than the S&P 500. Comparatively, CENTENNIAL RES has a beta of 2.12, suggesting that its stock price is 112% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for InterOil and CENTENNIAL RES, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
InterOil 0 2 0 0 2.00
CENTENNIAL RES 0 1 9 0 2.90

InterOil currently has a consensus target price of $51.00, indicating a potential upside of 5.46%. CENTENNIAL RES has a consensus target price of $22.89, indicating a potential upside of 43.68%. Given CENTENNIAL RES’s stronger consensus rating and higher possible upside, analysts clearly believe CENTENNIAL RES is more favorable than InterOil.

Insider & Institutional Ownership

46.6% of InterOil shares are owned by institutional investors. 44.7% of CENTENNIAL RES shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares InterOil and CENTENNIAL RES’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
InterOil N/A N/A N/A ($3.70) -13.07
CENTENNIAL RES $144.81 million 22.78 $88.07 million N/A N/A

CENTENNIAL RES has higher revenue and earnings than InterOil.

Summary

CENTENNIAL RES beats InterOil on 7 of the 10 factors compared between the two stocks.

InterOil Company Profile

InterOil Corporation (InterOil) is an oil and gas business with a sole focus on Papua New Guinea (PNG). The Company’s segments include Upstream and Corporate. The Upstream segment includes exploration, appraisal and development of hydrocarbon structures in PNG. The Corporate segment provides support to the Company’s other business segments through business development and improvement activities, general services, administration, human resources, executive management, financing and treasury, government affairs and investor relations. InterOil holds interests across over four exploration and approximately two production retention licenses in the Eastern Papuan Basin of Papua New Guinea. Its assets include the Elk, Antelope, Triceratops, Raptor and Bobcat fields in the Gulf Province of Papua New Guinea, and exploration licenses covering approximately 16,000 square kilometers (over four million acres) in Papua New Guinea.

CENTENNIAL RES 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.

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