Encana Corporation (NYSE: ECA) is one of 240 publicly-traded companies in the “Oil & Gas Exploration and Production” industry, but how does it contrast to its peers? We will compare Encana Corporation to similar companies based off the strength of its risk, institutional ownership, dividends, valuation, analyst recommendations, profitability and earnings.

Volatility & Risk

Encana Corporation has a beta of 2.06, meaning that its share price is 106% more volatile than the S&P 500. Comparatively, Encana Corporation’s peers have a beta of 1.41, meaning that their average share price is 41% more volatile than the S&P 500.

Profitability

This table compares Encana Corporation and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Encana Corporation 19.09% 6.25% 2.72%
Encana Corporation Competitors -442.60% 5.21% 0.72%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Encana Corporation and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Encana Corporation 1 7 15 2 2.72
Encana Corporation Competitors 1564 7854 12134 267 2.51

Encana Corporation presently has a consensus price target of $13.16, suggesting a potential upside of 42.76%. All “Oil & Gas Exploration and Production” companies have a potential upside of 48.54%. Given Encana Corporation’s peers higher probable upside, analysts clearly believe Encana Corporation has less favorable growth aspects than its peers.

Valuation and Earnings

This table compares Encana Corporation and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Encana Corporation $3.77 billion $1.68 billion 10.72
Encana Corporation Competitors $1.39 billion $604.75 million 20.14

Encana Corporation has higher revenue and earnings than its peers. Encana Corporation is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently the more affordable than other companies in its industry.

Insider and Institutional Ownership

66.8% of Encana Corporation shares are held by institutional investors. Comparatively, 62.6% of shares of all “Oil & Gas Exploration and Production” companies are held by institutional investors. 0.1% of Encana Corporation shares are held by insiders. Comparatively, 11.4% of shares of all “Oil & Gas Exploration and Production” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

Encana Corporation pays an annual dividend of $0.06 per share and has a dividend yield of 0.7%. Encana Corporation pays out 7.0% of its earnings in the form of a dividend. As a group, “Oil & Gas Exploration and Production” companies pay a dividend yield of 1.9% and pay out 368.1% of their earnings in the form of a dividend.

Summary

Encana Corporation beats its peers on 12 of the 15 factors compared.

Encana Corporation Company Profile

Encana Corporation is an energy producer that is focused on developing its multi-basin portfolio of natural gas, oil and natural gas liquids (NGLs) producing plays. The Company’s operations also include the marketing of natural gas, oil and NGLs. All of its reserves and production are located in North America. It operates through three segments: Canadian Operations, USA Operations and Market optimization. Its Canadian Operations segment includes the exploration for, development of, and production of natural gas oil and NGLs and other related activities within Canada. Its Canadian operations include Montney in northeast British Columbia and northwest Alberta and Duvernay in west central Alberta. The USA Operations include the exploration for, development of, and production of natural gas, oil and NGLs, and other related activities within the United States. The Market Optimization activities are primarily responsible for the sale of the Company’s production to third party customers.

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