Southwestern Energy (NYSE: SWN) is one of 240 publicly-traded companies in the “Oil & Gas Exploration and Production” industry, but how does it weigh in compared to its competitors? We will compare Southwestern Energy to similar businesses based on the strength of its analyst recommendations, earnings, valuation, risk, institutional ownership, profitability and dividends.

Profitability

This table compares Southwestern Energy and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Southwestern Energy -9.46% 25.19% 4.35%
Southwestern Energy Competitors -442.01% 3.68% 0.73%

Earnings & Valuation

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

Gross Revenue EBITDA Price/Earnings Ratio
Southwestern Energy $2.99 billion $1.09 billion -5.91
Southwestern Energy Competitors $1.39 billion $598.28 million 21.12

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

Risk and Volatility

Southwestern Energy has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500. Comparatively, Southwestern Energy’s competitors have a beta of 1.41, meaning that their average share price is 41% more volatile than the S&P 500.

Institutional and Insider Ownership

89.6% of Southwestern Energy shares are held by institutional investors. Comparatively, 62.2% of shares of all “Oil & Gas Exploration and Production” companies are held by institutional investors. 1.2% of Southwestern Energy shares are held by company insiders. Comparatively, 11.4% of shares of all “Oil & Gas Exploration and Production” companies are held by company 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.

Analyst Recommendations

This is a summary of current ratings and target prices for Southwestern Energy and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Southwestern Energy 2 13 8 0 2.26
Southwestern Energy Competitors 1572 7871 12171 268 2.51

Southwestern Energy presently has a consensus price target of $12.53, suggesting a potential upside of 116.34%. As a group, “Oil & Gas Exploration and Production” companies have a potential upside of 44.62%. Given Southwestern Energy’s higher possible upside, equities analysts clearly believe Southwestern Energy is more favorable than its competitors.

Summary

Southwestern Energy beats its competitors on 7 of the 13 factors compared.

About Southwestern Energy

Southwestern Energy Company is an energy company engaged in natural gas and oil exploration, development and production. The Company operates through two segments: Exploration and Production (E&P) and Midstream Services. Its operations in northeast Pennsylvania are primarily focused on the unconventional natural gas reservoir known as the Marcellus Shale. Through its affiliated midstream subsidiaries, it is engaged in natural gas gathering activities in Arkansas and Louisiana. Its operations are principally focused on the development of unconventional natural gas reservoirs located in Pennsylvania, West Virginia and Arkansas. As of December 31, 2016, its estimated proved natural gas and oil reserves were 5,253 billions of cubic feet equivalent (Bcfe). During the fiscal year ended December 31, 2016, it gathered approximately 600 billion cubic feet (Bcf) of natural gas in the Fayetteville Shale area, including 42 Bcf of natural gas from third-party operated wells.

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