Royal Dutch Shell (NYSE: RDS.B) is one of 20 public companies in the “Integrated Oil & Gas” industry, but how does it contrast to its rivals? We will compare Royal Dutch Shell to related businesses based on the strength of its valuation, risk, analyst recommendations, profitability, dividends, earnings and institutional ownership.

Risk and Volatility

Royal Dutch Shell has a beta of 1.13, meaning that its stock price is 13% more volatile than the S&P 500. Comparatively, Royal Dutch Shell’s rivals have a beta of 1.35, meaning that their average stock price is 35% more volatile than the S&P 500.

Earnings & Valuation

This table compares Royal Dutch Shell and its rivals revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Royal Dutch Shell $233.59 billion $4.58 billion 25.36
Royal Dutch Shell Competitors $78.29 billion $113.43 million -189.04

Royal Dutch Shell has higher revenue and earnings than its rivals. Royal Dutch Shell is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Royal Dutch Shell and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Royal Dutch Shell 3.74% 6.64% 3.13%
Royal Dutch Shell Competitors -7.97% 2.68% 1.10%

Dividends

Royal Dutch Shell pays an annual dividend of $3.76 per share and has a dividend yield of 5.7%. Royal Dutch Shell pays out 145.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Integrated Oil & Gas” companies pay a dividend yield of 3.5% and pay out 88.0% of their earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of current ratings and price targets for Royal Dutch Shell and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Royal Dutch Shell 0 1 0 0 2.00
Royal Dutch Shell Competitors 218 673 785 31 2.37

As a group, “Integrated Oil & Gas” companies have a potential upside of 23.63%. Given Royal Dutch Shell’s rivals stronger consensus rating and higher probable upside, analysts plainly believe Royal Dutch Shell has less favorable growth aspects than its rivals.

Insider & Institutional Ownership

5.1% of Royal Dutch Shell shares are owned by institutional investors. Comparatively, 40.6% 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 large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Royal Dutch Shell rivals beat Royal Dutch Shell on 8 of the 15 factors compared.

About Royal Dutch Shell

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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