Critical Contrast: PetroChina (PTR) vs. Centennial Resource Development (CDEV)
PetroChina (NYSE: PTR) and Centennial Resource Development (NASDAQ:CDEV) are both mid-cap oils/energy companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, valuation, earnings, profitability, analyst recommendations, dividends and risk.
Valuation and Earnings
This table compares PetroChina and Centennial Resource Development’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|PetroChina||$243.50 billion||0.57||$1.18 billion||$1.90||39.56|
|Centennial Resource Development||$98.83 million||57.06||-$226.80 million||($1.14)||-17.93|
Insider and Institutional Ownership
0.2% of PetroChina shares are owned by institutional investors. Comparatively, 93.4% of Centennial Resource Development shares are owned by institutional investors. 44.7% of Centennial Resource Development shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
This table compares PetroChina and Centennial Resource Development’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Centennial Resource Development||-49.20%||-5.52%||-5.19%|
This is a breakdown of recent recommendations and price targets for PetroChina and Centennial Resource Development, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Centennial Resource Development||0||1||15||0||2.94|
Centennial Resource Development has a consensus target price of $22.71, suggesting a potential upside of 11.13%. Given Centennial Resource Development’s stronger consensus rating and higher probable upside, analysts clearly believe Centennial Resource Development is more favorable than PetroChina.
PetroChina pays an annual dividend of $1.39 per share and has a dividend yield of 1.8%. Centennial Resource Development does not pay a dividend. PetroChina pays out 73.2% of its earnings in the form of a dividend.
PetroChina beats Centennial Resource Development on 8 of the 15 factors compared between the two stocks.
PetroChina Company Profile
PetroChina Company Limited is a China-based company principally engaged in the production and distribution of oil and gas. The Company mainly operates through four business segments. The Exploration and Production segment is principally engaged in the exploration, development, production and sales of crude oil and natural gas. The Refining and Chemical Products segment is principally engaged in the refining of crude oil and petroleum products, as well as the production and sales of basic petrochemical products, derivative petrochemical products and other chemical products. The Sales segment is principally engaged in the sales of refined petroleum products. The Natural Gas and Pipeline segment is engaged in the transportation and sales of natural gas, crude oil and refined petroleum products.
Centennial Resource Development Company Profile
Centennial Resource Development, Inc. is an independent oil and natural gas company. The Company is focused on the development of unconventional oil and associated liquids-rich natural gas reserves in the Permian Basin. The Company’s assets are concentrated in the Delaware Basin, a sub-basin of the Permian Basin. Its properties consist of large, contiguous acreage blocks in Reeves, Ward and Pecos counties in West Texas. As of December 31, 2016, the Company held approximately 92% membership interest in Centennial Resource Production, LLC (CRP). As of December 31, 2016, its portfolio included 106 operated producing horizontal wells. The horizontal wells span an area of approximately 45 miles long by 20 miles wide where it had commercial production in five zones: the 3rd Bone Spring Sandstone, Upper Wolfcamp A, Lower Wolfcamp A, Wolfcamp B and Wolfcamp C.
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