Royal Dutch Shell (NYSE: RDS.A) is one of 20 publicly-traded companies in the “Integrated Oil & Gas” industry, but how does it compare to its peers? We will compare Royal Dutch Shell to related businesses based on the strength of its profitability, valuation, earnings, analyst recommendations, institutional ownership, dividends and risk.
Institutional & Insider Ownership
6.5% of Royal Dutch Shell shares are owned by institutional investors. Comparatively, 41.7% of shares of all “Integrated Oil & Gas” companies are owned by institutional investors. 1.0% of Royal Dutch Shell shares are owned by insiders. Comparatively, 9.8% of shares of all “Integrated Oil & Gas” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Royal Dutch Shell pays an annual dividend of $3.20 per share and has a dividend yield of 5.0%. Royal Dutch Shell pays out 123.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Integrated Oil & Gas” companies pay a dividend yield of 3.5% and pay out 124.9% of their earnings in the form of a dividend. Royal Dutch Shell is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.
Risk & Volatility
Royal Dutch Shell has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500. Comparatively, Royal Dutch Shell’s peers have a beta of 1.40, suggesting that their average stock price is 40% more volatile than the S&P 500.
This is a summary of recent ratings and recommmendations for Royal Dutch Shell and its peers, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Royal Dutch Shell||1||5||9||0||2.53|
|Royal Dutch Shell Competitors||217||671||783||31||2.37|
Royal Dutch Shell presently has a consensus target price of $57.03, indicating a potential downside of 11.13%. As a group, “Integrated Oil & Gas” companies have a potential upside of 30.29%. Given Royal Dutch Shell’s peers higher probable upside, analysts clearly believe Royal Dutch Shell has less favorable growth aspects than its peers.
This table compares Royal Dutch Shell and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Royal Dutch Shell||3.71%||6.64%||3.13%|
|Royal Dutch Shell Competitors||-8.57%||2.63%||1.11%|
Valuation and Earnings
This table compares Royal Dutch Shell and its peers gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Royal Dutch Shell||$233.59 billion||$4.58 billion||24.78|
|Royal Dutch Shell Competitors||$78.29 billion||$113.43 million||-204.53|
Royal Dutch Shell has higher revenue and earnings than its peers. Royal Dutch Shell is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
Royal Dutch Shell beats its peers on 10 of the 15 factors compared.
Royal Dutch Shell Company Profile
The Royal Dutch Shell plc explores for crude oil and natural gas around the world, both in conventional fields and from sources, such as tight rock, shale and coal formations. The Company’s segments include Integrated Gas, Upstream, Downstream and Corporate. The Integrated Gas segment is engaged in the liquefaction and transportation of gas and the conversion of natural gas to liquids to provide fuels and other products, as well as projects with an integrated activity, ranging from producing to commercializing gas. The Upstream segment includes the operations of Upstream, which is engaged in the exploration for and extraction of crude oil, natural gas and natural gas liquids, and the marketing and transportation of oil and gas, and Oil Sands, which is engaged in the extraction of bitumen from mined oil sands and conversion into synthetic crude oil. The Downstream segment is engaged in oil products and chemicals manufacturing, and marketing activities.
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