Earthstone Energy (NYSE: ESTE) is one of 225 publicly-traded companies in the “Oil & Gas Exploration and Production” industry, but how does it contrast to its peers? We will compare Earthstone Energy to similar companies based on the strength of its profitability, dividends, risk, valuation, earnings, institutional ownership and analyst recommendations.

Insider & Institutional Ownership

13.4% of Earthstone 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. 64.5% of Earthstone Energy shares are held by company insiders. Comparatively, 12.6% of shares of all “Oil & Gas Exploration and Production” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Earthstone Energy has a beta of 1.38, suggesting that its stock price is 38% more volatile than the S&P 500. Comparatively, Earthstone Energy’s peers have a beta of 1.39, suggesting that their average stock price is 39% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Earthstone Energy and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Earthstone Energy 0 0 10 0 3.00
Earthstone Energy Competitors 1472 7664 12344 260 2.52

Earthstone Energy currently has a consensus price target of $14.80, suggesting a potential upside of 51.33%. As a group, “Oil & Gas Exploration and Production” companies have a potential upside of 36.38%. Given Earthstone Energy’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Earthstone Energy is more favorable than its peers.

Profitability

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

Net Margins Return on Equity Return on Assets
Earthstone Energy -54.69% 4.01% 3.25%
Earthstone Energy Competitors -304.50% 24.09% 5.64%

Earnings and Valuation

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

Gross Revenue Net Income Price/Earnings Ratio
Earthstone Energy $42.27 million -$54.54 million -4.59
Earthstone Energy Competitors $1.86 billion -$439.03 million -24.18

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

Earthstone Energy beats its peers on 7 of the 13 factors compared.

About Earthstone Energy

Earthstone Energy, Inc. is an independent oil and natural gas development and production company. The Company is also engaged in corporate mergers and the acquisition of oil and natural gas properties that have production and future development opportunities. Its operations are all in the upstream segment of the oil and natural gas industry and all its properties are onshore in the United States. The Company’s reserve portfolio primarily consists of assets in the Midland Basin of west Texas, the Eagle Ford trend of south Texas and in the Williston Basin of North Dakota. As of December 31, 2016, the Company held approximately 5,900 net leasehold acres in the Midland Basin, located in Howard, Glasscock, Martin and Midland Counties. As of December 31, 2016, it also has approximately 21,000 net leasehold acres in the Eagle Ford trend of south Texas. In the Williston Basin of North Dakota, it had approximately 5,900 net leasehold acres, as of December 31, 2016.

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