Unit (NYSE: UNT) is one of 226 publicly-traded companies in the “Oil & Gas Exploration and Production” industry, but how does it compare to its peers? We will compare Unit to related companies based on the strength of its risk, profitability, earnings, analyst recommendations, institutional ownership, dividends and valuation.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Unit and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Unit 0 3 2 0 2.40
Unit Competitors 1405 7534 12202 257 2.53

Unit presently has a consensus price target of $24.60, indicating a potential upside of 12.12%. As a group, “Oil & Gas Exploration and Production” companies have a potential upside of 38.21%. Given Unit’s peers stronger consensus rating and higher possible upside, analysts clearly believe Unit has less favorable growth aspects than its peers.

Insider and Institutional Ownership

95.2% of Unit shares are owned by institutional investors. Comparatively, 61.8% of shares of all “Oil & Gas Exploration and Production” companies are owned by institutional investors. 3.3% of Unit shares are owned by insiders. Comparatively, 12.6% of shares of all “Oil & Gas Exploration and Production” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Unit and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Unit 4.28% 2.33% 1.14%
Unit Competitors -440.80% 25.54% 6.95%

Risk & Volatility

Unit has a beta of 2.9, indicating that its stock price is 190% more volatile than the S&P 500. Comparatively, Unit’s peers have a beta of 1.38, indicating that their average stock price is 38% more volatile than the S&P 500.

Earnings & Valuation

This table compares Unit and its peers revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Unit $602.18 million -$135.62 million 37.83
Unit Competitors $1.86 billion -$439.03 million -33.70

Unit’s peers have higher revenue, but lower earnings than Unit. Unit 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.

Summary

Unit peers beat Unit on 8 of the 13 factors compared.

About Unit

Unit Corporation is an oil and natural gas contract drilling company. The Company has operations in the exploration and production and mid-stream areas. The Company operates through three segments: Oil and Natural Gas, Contract Drilling and Mid-Stream. It is primarily engaged in the exploration, development, acquisition, and production of oil and natural gas properties, the land contract drilling of natural gas and oil wells, and the buying, selling, gathering, processing and treating of natural gas. Its Oil and Natural Gas operations are carried out by its subsidiary Unit Petroleum Company. Contract Drilling operations are carried out by its subsidiary Unit Drilling Company. Its drills onshore oil and natural gas wells for its own account, as well as for other oil and natural gas companies. Its Mid-Stream operations are carried out by its subsidiary Superior Pipeline Company, L.L.C. Its mid-stream operations consist of buying, selling, gathering, processing and treating natural gas.

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