Earthstone Energy (NYSE: ESTE) is one of 223 publicly-traded companies in the “Oil & Gas Exploration and Production” industry, but how does it weigh in compared to its competitors? We will compare Earthstone Energy to similar businesses based on the strength of its dividends, institutional ownership, earnings, risk, analyst recommendations, profitability and valuation.

Profitability

This table compares Earthstone Energy and its competitors’ 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 -304.75% 24.51% 5.82%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Earthstone Energy and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Earthstone Energy 0 0 10 0 3.00
Earthstone Energy Competitors 1441 7548 12298 260 2.53

Earthstone Energy currently has a consensus price target of $14.80, indicating a potential upside of 64.26%. As a group, “Oil & Gas Exploration and Production” companies have a potential upside of 37.93%. Given Earthstone Energy’s stronger consensus rating and higher possible upside, research analysts clearly believe Earthstone Energy is more favorable than its competitors.

Institutional and Insider 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 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, endowments and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

Earthstone Energy has a beta of 1.38, indicating that its share price is 38% more volatile than the S&P 500. Comparatively, Earthstone Energy’s competitors have a beta of 1.38, indicating that their average share price is 38% more volatile than the S&P 500.

Earnings & Valuation

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

Gross Revenue Net Income Price/Earnings Ratio
Earthstone Energy $42.27 million -$54.54 million -4.23
Earthstone Energy Competitors $1.86 billion -$439.03 million -22.12

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

Summary

Earthstone Energy beats its competitors 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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