Head-To-Head Analysis: Pengrowth Energy (PGH) & Viper Energy Partners (VNOM)
Pengrowth Energy (NYSE: PGH) and Viper Energy Partners (NASDAQ:VNOM) are both oils/energy companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, risk, analyst recommendations, dividends, valuation and profitability.
Insider & Institutional Ownership
14.5% of Pengrowth Energy shares are held by institutional investors. Comparatively, 27.1% of Viper Energy Partners shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Pengrowth Energy has a beta of 2.36, suggesting that its stock price is 136% more volatile than the S&P 500. Comparatively, Viper Energy Partners has a beta of 1.06, suggesting that its stock price is 6% more volatile than the S&P 500.
Earnings and Valuation
This table compares Pengrowth Energy and Viper Energy Partners’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Pengrowth Energy||$427.50 million||1.06||-$221.80 million||($0.79)||-1.04|
|Viper Energy Partners||$79.15 million||30.92||-$10.89 million||$0.87||24.70|
Viper Energy Partners has lower revenue, but higher earnings than Pengrowth Energy. Pengrowth Energy is trading at a lower price-to-earnings ratio than Viper Energy Partners, indicating that it is currently the more affordable of the two stocks.
Viper Energy Partners pays an annual dividend of $1.35 per share and has a dividend yield of 6.3%. Pengrowth Energy does not pay a dividend. Viper Energy Partners pays out 155.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This is a breakdown of current ratings and price targets for Pengrowth Energy and Viper Energy Partners, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Viper Energy Partners||0||1||9||1||3.00|
Pengrowth Energy presently has a consensus target price of $2.19, indicating a potential upside of 166.77%. Viper Energy Partners has a consensus target price of $21.89, indicating a potential upside of 1.86%. Given Pengrowth Energy’s higher possible upside, research analysts plainly believe Pengrowth Energy is more favorable than Viper Energy Partners.
This table compares Pengrowth Energy and Viper Energy Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Viper Energy Partners||60.87%||12.08%||11.11%|
Viper Energy Partners beats Pengrowth Energy on 11 of the 15 factors compared between the two stocks.
About Pengrowth Energy
Pengrowth Energy Corporation is engaged in the development, production and acquisition of, and the exploration for, oil and natural gas reserves in the provinces of Alberta, British Columbia, Saskatchewan and Nova Scotia. The Lindbergh thermal property is located approximately 420 kilometers north east of Calgary, Alberta and 50 kilometers south of Bonnyville, Alberta. Its Greater Olds/Garrington area is located approximately 100 kilometers north of Calgary, Alberta. It has varied Working Interests within the Swan Hills area in all of the properties throughout this regional Beaverhill Lake resource base. These are both operated and non-operated, unit and non-unit properties in Judy Creek, Carson Creek, House Mountain, Deer Mountain, Swan Hills, South Swan Hills and Freeman. The properties are located approximately 200 kilometers northwest of Edmonton, Alberta. Its Groundbirch property is located approximately 40 kilometers south west of Fort St. John, British Columbia.
About Viper Energy Partners
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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