Whiting Petroleum (WLL) versus Pengrowth Energy (PGH) Financial Analysis

Whiting Petroleum (NYSE: WLL) and Pengrowth Energy (NYSE:PGH) are both oils/energy companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, risk, valuation, analyst recommendations, institutional ownership and dividends.

Analyst Ratings

This is a summary of current recommendations for Whiting Petroleum and Pengrowth Energy, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Whiting Petroleum 4 12 10 0 2.23
Pengrowth Energy 5 2 0 0 1.29

Whiting Petroleum presently has a consensus price target of $34.07, suggesting a potential upside of 13.83%. Pengrowth Energy has a consensus price target of $2.00, suggesting a potential upside of 156.97%. Given Pengrowth Energy’s higher possible upside, analysts clearly believe Pengrowth Energy is more favorable than Whiting Petroleum.

Insider & Institutional Ownership

14.5% of Pengrowth Energy shares are owned by institutional investors. 1.2% of Whiting Petroleum shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

Whiting Petroleum has a beta of 3.4, suggesting that its share price is 240% more volatile than the S&P 500. Comparatively, Pengrowth Energy has a beta of 2.36, suggesting that its share price is 136% more volatile than the S&P 500.

Profitability

This table compares Whiting Petroleum and Pengrowth Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Whiting Petroleum -45.39% -5.06% -2.71%
Pengrowth Energy -101.66% -38.22% -14.60%

Earnings & Valuation

This table compares Whiting Petroleum and Pengrowth Energy’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Whiting Petroleum $1.28 billion 2.11 -$1.34 billion ($7.20) -4.16
Pengrowth Energy $427.50 million 1.01 -$221.80 million ($0.79) -0.99

Pengrowth Energy has lower revenue, but higher earnings than Whiting Petroleum. Whiting Petroleum is trading at a lower price-to-earnings ratio than Pengrowth Energy, indicating that it is currently the more affordable of the two stocks.

Summary

Whiting Petroleum beats Pengrowth Energy on 9 of the 13 factors compared between the two stocks.

Whiting Petroleum Company Profile

Whiting Petroleum Corporation is an independent oil and gas company. The Company is engaged in development, production, acquisition and exploration activities primarily in the Rocky Mountains region of the United States. It is engaged in the exploration and production of crude oil, natural gas liquid (NGLs) and natural gas. Its Northern Rocky Mountains operations included properties in the Williston Basin of North Dakota and Montana targeting the Bakken and Three Forks formations and encompassing approximately 736,000 gross developed and undeveloped acres, as of December 31, 2016. Its Central Rocky Mountains operations included properties at its Redtail field in the Denver Julesburg Basin in Weld County, Colorado targeting the Niobrara and Codell/Fort Hays formations and encompassing approximately 157,200 gross developed and undeveloped acres, as of December 31, 2016. Its other operations primarily relate to non-core assets in Colorado, Mississippi, North Dakota, Texas and Wyoming.

Pengrowth Energy Company Profile

Pengrowth Energy Corporation is engaged in the development, production and acquisition of, and the exploration for, oil and natural gas reserves in the provinces of Alberta, British Columbia, Saskatchewan and Nova Scotia. The Lindbergh thermal property is located approximately 420 kilometers north east of Calgary, Alberta and 50 kilometers south of Bonnyville, Alberta. Its Greater Olds/Garrington area is located approximately 100 kilometers north of Calgary, Alberta. It has varied Working Interests within the Swan Hills area in all of the properties throughout this regional Beaverhill Lake resource base. These are both operated and non-operated, unit and non-unit properties in Judy Creek, Carson Creek, House Mountain, Deer Mountain, Swan Hills, South Swan Hills and Freeman. The properties are located approximately 200 kilometers northwest of Edmonton, Alberta. Its Groundbirch property is located approximately 40 kilometers south west of Fort St. John, British Columbia.

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