Pioneer Natural Resources (PXD) and Viper Energy Partners (VNOM) Head to Head Survey
Pioneer Natural Resources (NYSE: PXD) and Viper Energy Partners (NASDAQ:VNOM) are both mid-cap oils/energy companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.
This table compares Pioneer Natural Resources and Viper Energy Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Pioneer Natural Resources||3.10%||1.79%||1.15%|
|Viper Energy Partners||60.87%||12.08%||11.11%|
Pioneer Natural Resources pays an annual dividend of $0.08 per share and has a dividend yield of 0.1%. Viper Energy Partners pays an annual dividend of $1.33 per share and has a dividend yield of 6.8%. Pioneer Natural Resources pays out 8.2% of its earnings in the form of a dividend. Viper Energy Partners pays out 151.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Valuation & Earnings
This table compares Pioneer Natural Resources and Viper Energy Partners’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Pioneer Natural Resources||$4.89 billion||5.21||$1.79 billion||$0.98||152.72|
|Viper Energy Partners||$118.19 million||18.88||$104.04 million||$0.88||22.27|
Pioneer Natural Resources has higher revenue and earnings than Viper Energy Partners. Viper Energy Partners is trading at a lower price-to-earnings ratio than Pioneer Natural Resources, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Pioneer Natural Resources has a beta of 0.94, suggesting that its stock price is 6% less volatile than the S&P 500. Comparatively, Viper Energy Partners has a beta of 0.99, suggesting that its stock price is 1% less volatile than the S&P 500.
This is a breakdown of recent ratings and target prices for Pioneer Natural Resources and Viper Energy Partners, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Pioneer Natural Resources||0||4||20||0||2.83|
|Viper Energy Partners||0||1||8||1||3.00|
Pioneer Natural Resources presently has a consensus target price of $195.28, indicating a potential upside of 30.47%. Viper Energy Partners has a consensus target price of $21.89, indicating a potential upside of 11.68%. Given Pioneer Natural Resources’ higher possible upside, analysts plainly believe Pioneer Natural Resources is more favorable than Viper Energy Partners.
Institutional & Insider Ownership
91.8% of Pioneer Natural Resources shares are held by institutional investors. Comparatively, 15.6% of Viper Energy Partners shares are held by institutional investors. 0.9% of Pioneer Natural Resources shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Pioneer Natural Resources beats Viper Energy Partners on 9 of the 17 factors compared between the two stocks.
Pioneer Natural Resources Company Profile
Pioneer Natural Resources Company is an oil and gas exploration and production company. The Company explores for, develops and produces oil, natural gas liquids (NGLs) and gas within the United States, with operations primarily in the Permian Basin in West Texas, the Eagle Ford Shale play in South Texas, the Raton field in southeast Colorado and the West Panhandle field in the Texas Panhandle. As of December 31, 2016, the Company owned interests in eight gas processing plants and nine treating facilities. As of December 31, 2016, its Spraberry/Wolfcamp field covered approximately 800,000 gross acres (690,000 net acres). The Company completed 12 Eagle Ford Shale wells during the fiscal year ended December 31, 2016. As of December 31, 2016, the Company owned approximately 185,000 gross acres (165,000 net acres) in the center of the Raton Basin. As of December 31, 2016, the Company’s gas had an average energy content of 1,400 British thermal unit (Btu).
Viper Energy Partners Company Profile
Viper Energy Partners LP is engaged in owning, acquiring and exploiting oil and natural gas properties in North America. The Company’s assets are located in the Permian Basin of West Texas. As of December 31, 2016, the Permian Basin consisted of approximately 85,000 square miles. As of December 31, 2016, its assets consisted of mineral interests underlying 107,568 gross acres in the Permian Basin. As of December 31, 2016, there were 545 vertical wells and 190 horizontal wells producing on this acreage. As of December 31, 2016, its estimated proved oil and natural gas reserves of its assets was 31,435 thousand barrels of crude oil equivalent (MBOE). As of December 31, 2016, the Company’s proved reserves were approximately 68% oil, 18% natural gas liquids and 14% natural gas. In addition to its mineral interests, the Company owns a minor equity interest in an entity that owns mineral, overriding royalty, net profits, leasehold and other similar interests.
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