Critical Analysis: Hess Corporation (HES) vs. Its Rivals
Hess Corporation (NYSE: HES) is one of 38 publicly-traded companies in the “Oil & Gas Refining and Marketing” industry, but how does it contrast to its peers? We will compare Hess Corporation to similar companies based on the strength of its risk, analyst recommendations, institutional ownership, profitability, earnings, dividends and valuation.
Hess Corporation pays an annual dividend of $1.00 per share and has a dividend yield of 2.3%. Hess Corporation pays out -5.0% of its earnings in the form of a dividend. As a group, “Oil & Gas Refining and Marketing” companies pay a dividend yield of 5.1% and pay out 593.5% of their earnings in the form of a dividend.
Insider and Institutional Ownership
87.9% of Hess Corporation shares are held by institutional investors. Comparatively, 47.3% of shares of all “Oil & Gas Refining and Marketing” companies are held by institutional investors. 11.8% of Hess Corporation shares are held by company insiders. Comparatively, 11.7% of shares of all “Oil & Gas Refining and Marketing” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares Hess Corporation and its peers top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Hess Corporation||$4.94 billion||$1.45 billion||-2.16|
|Hess Corporation Competitors||$45.68 billion||$4.44 billion||21.63|
Hess Corporation’s peers have higher revenue and earnings than Hess Corporation. Hess Corporation is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
This is a summary of recent ratings and target prices for Hess Corporation and its peers, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Hess Corporation Competitors||369||1737||2158||110||2.46|
Hess Corporation presently has a consensus target price of $51.85, indicating a potential upside of 19.08%. As a group, “Oil & Gas Refining and Marketing” companies have a potential upside of 9.84%. Given Hess Corporation’s higher probable upside, equities research analysts clearly believe Hess Corporation is more favorable than its peers.
Volatility and Risk
Hess Corporation has a beta of 1.77, suggesting that its stock price is 77% more volatile than the S&P 500. Comparatively, Hess Corporation’s peers have a beta of 1.30, suggesting that their average stock price is 30% more volatile than the S&P 500.
This table compares Hess Corporation and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Hess Corporation Competitors||-1.17%||2.05%||1.41%|
Hess Corporation peers beat Hess Corporation on 9 of the 14 factors compared.
About Hess Corporation
Hess Corporation is an exploration and production company. The Company is engaged in exploration, development, production, transportation, purchase and sale of crude oil, natural gas liquids (NGL) and natural gas. The Company’s segments include Exploration and Production, and Bakken Midstream. Its Exploration and Production segment explores for, develops, produces, purchases and sells crude oil, NGLs and natural gas with production operations primarily in the United States, Denmark, Equatorial Guinea, the Malaysia/Thailand Joint Development Area (JDA), Malaysia and Norway. The Bakken Midstream segment provides fee-based services, including crude oil and natural gas gathering, processing of natural gas and the fractionation of NGLs, transportation of crude oil by rail car, terminaling and loading crude oil and NGLs, and the storage and terminaling of propane, primarily in the Bakken shale play of North Dakota.
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