Jones Energy (NYSE: JONE) is one of 228 publicly-traded companies in the “Oil & Gas Exploration and Production” industry, but how does it contrast to its competitors? We will compare Jones Energy to similar businesses based on the strength of its valuation, dividends, profitability, risk, analyst recommendations, institutional ownership and earnings.

Analyst Recommendations

This is a summary of recent ratings for Jones Energy and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Jones Energy 1 3 3 0 2.29
Jones Energy Competitors 1474 7693 12380 260 2.52

Jones Energy presently has a consensus target price of $4.08, suggesting a potential upside of 391.97%. As a group, “Oil & Gas Exploration and Production” companies have a potential upside of 36.37%. Given Jones Energy’s higher probable upside, equities research analysts plainly believe Jones Energy is more favorable than its competitors.

Profitability

This table compares Jones Energy and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Jones Energy -105.90% -0.80% -0.35%
Jones Energy Competitors -302.57% 23.93% 5.60%

Institutional & Insider Ownership

59.4% of Jones Energy shares are held by institutional investors. Comparatively, 61.8% of shares of all “Oil & Gas Exploration and Production” companies are held by institutional investors. 37.2% of Jones Energy shares are held by insiders. Comparatively, 12.6% of shares of all “Oil & Gas Exploration and Production” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Jones Energy and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Jones Energy $127.85 million -$42.55 million -0.29
Jones Energy Competitors $1.86 billion -$439.03 million -13.64

Jones Energy’s competitors have higher revenue, but lower earnings than Jones Energy. Jones Energy is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Volatility and Risk

Jones Energy has a beta of 2.63, suggesting that its stock price is 163% more volatile than the S&P 500. Comparatively, Jones Energy’s competitors have a beta of 1.39, suggesting that their average stock price is 39% more volatile than the S&P 500.

Summary

Jones Energy competitors beat Jones Energy on 7 of the 12 factors compared.

About Jones Energy

Jones Energy, Inc. is an independent oil and gas company engaged in the exploration, development, production and acquisition of oil and natural gas properties. The Company’s assets are located within the Anadarko and Arkoma basins of Texas and Oklahoma. It owns leasehold interests in oil and natural gas producing properties, as well as in undeveloped acreage, located in the Anadarko and Arkoma basins in Texas and Oklahoma. The Company’s oil is generally sold under short-term, extendable and cancellable agreements with unaffiliated purchasers. The Company’s natural gas is sold at delivery points at or near producing wells to natural gas gathering and marketing companies. Its total estimated proved reserves are approximately 101.7 million barrels of oil equivalent (MMBoe). Approximately 25% of its total estimated proved reserves consist of oil, over 32% consist of natural gas liquids (NGLs) and over 43% consist of natural gas. Its properties include over 1,020 gross producing wells.

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