Critical Survey: CNOOC (CEO) & The Competition

CNOOC (NYSE: CEO) is one of 229 public companies in the “Oil & Gas Exploration and Production” industry, but how does it compare to its rivals? We will compare CNOOC to similar businesses based on the strength of its institutional ownership, profitability, analyst recommendations, dividends, earnings, risk and valuation.

Earnings & Valuation

This table compares CNOOC and its rivals gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
CNOOC $22.06 billion $92.00 million 16.99
CNOOC Competitors $1.86 billion -$439.03 million -25.07

CNOOC has higher revenue and earnings than its rivals. CNOOC 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.

Analyst Ratings

This is a summary of recent recommendations for CNOOC and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CNOOC 0 1 6 1 3.00
CNOOC Competitors 1483 7702 12433 258 2.52

CNOOC presently has a consensus target price of $72.32, indicating a potential downside of 48.89%. As a group, “Oil & Gas Exploration and Production” companies have a potential upside of 41.46%. Given CNOOC’s rivals higher possible upside, analysts clearly believe CNOOC has less favorable growth aspects than its rivals.

Profitability

This table compares CNOOC and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CNOOC N/A N/A N/A
CNOOC Competitors -303.51% 23.86% 5.55%

Risk and Volatility

CNOOC has a beta of 0.8, indicating that its stock price is 20% less volatile than the S&P 500. Comparatively, CNOOC’s rivals have a beta of 1.40, indicating that their average stock price is 40% more volatile than the S&P 500.

Institutional and Insider Ownership

1.7% of CNOOC shares are owned by institutional investors. Comparatively, 61.0% of shares of all “Oil & Gas Exploration and Production” companies are owned by institutional investors. 12.5% of shares of all “Oil & Gas Exploration and Production” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Dividends

CNOOC pays an annual dividend of $4.92 per share and has a dividend yield of 3.5%. CNOOC pays out 59.1% of its earnings in the form of a dividend. As a group, “Oil & Gas Exploration and Production” companies pay a dividend yield of 1.8% and pay out 183.0% of their earnings in the form of a dividend. CNOOC is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Summary

CNOOC beats its rivals on 8 of the 14 factors compared.

About CNOOC

CNOOC Limited is a Hong Kong-based investment holding company principally engaged in the exploration, production and trading of oil and gas. Its businesses include conventional oil and gas businesses, shale oil and gas businesses, oil sands businesses and other unconventional oil and gas businesses. The Company mainly operates businesses through three segments. The Exploration and Production segment is engaged in the exploration, development and production of crude oil, natural gas and other petroleum products. The Trading segment is engaged in the trading of crude oil, natural gas and other petroleum products. The Corporate segment is engaged in corporate-related businesses. The Company mainly operates businesses in China, Canada, the United Kingdom, Nigeria, Indonesia and Brazil, among others.

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