Anadarko Petroleum (NYSE:APC) and QEP Resources (NYSE:QEP) are both oils/energy companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, valuation, analyst recommendations, risk, earnings, dividends and institutional ownership.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Anadarko Petroleum and QEP Resources, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Anadarko Petroleum 0 4 18 0 2.82
QEP Resources 1 8 5 0 2.29

Anadarko Petroleum currently has a consensus target price of $79.89, suggesting a potential upside of 19.93%. QEP Resources has a consensus target price of $13.40, suggesting a potential upside of 21.52%. Given QEP Resources’ higher probable upside, analysts plainly believe QEP Resources is more favorable than Anadarko Petroleum.

Valuation & Earnings

This table compares Anadarko Petroleum and QEP Resources’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Anadarko Petroleum $11.91 billion 2.86 -$456.00 million ($1.96) -33.99
QEP Resources $1.62 billion 1.61 $269.30 million $0.77 14.32

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

Volatility & Risk

Anadarko Petroleum has a beta of 1.27, indicating that its share price is 27% more volatile than the S&P 500. Comparatively, QEP Resources has a beta of 1.32, indicating that its share price is 32% more volatile than the S&P 500.

Dividends

Anadarko Petroleum pays an annual dividend of $1.00 per share and has a dividend yield of 1.5%. QEP Resources does not pay a dividend. Anadarko Petroleum pays out -51.0% of its earnings in the form of a dividend.

Insider and Institutional Ownership

86.2% of Anadarko Petroleum shares are held by institutional investors. Comparatively, 99.2% of QEP Resources shares are held by institutional investors. 0.5% of Anadarko Petroleum shares are held by company insiders. Comparatively, 1.6% of QEP Resources shares are held 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.

Profitability

This table compares Anadarko Petroleum and QEP Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Anadarko Petroleum 3.63% 1.85% 0.56%
QEP Resources -13.63% 5.96% 2.91%

Anadarko Petroleum Company Profile

Anadarko Petroleum Corporation engages in the exploration, development, production, and marketing of oil and gas properties. It operates through three segments: Exploration and Production, WES Midstream, and Other Midstream. The company explores for and produces oil, natural gas, and natural gas liquids (NGLs). It also engages in gathering, processing, treating, and transporting oil, natural-gas, and NGLs production, as well as the gathering and disposal of produced water. The company's oil and natural gas properties are located in the U.S. onshore and deepwater Gulf of Mexico; and Algeria, Ghana, Mozambique, Colombia, and other countries. As of December 31, 2017, it had approximately 1.4 billion barrels of oil equivalent of proved reserves. Anadarko Petroleum Corporation was founded in 1959 and is headquartered in The Woodlands, Texas.

QEP Resources Company Profile

QEP Resources, Inc., through its subsidiaries, operates as a natural gas and crude oil exploration and production company in the United States. The company conducts exploration and production activities in the Permian Basin in western Texas, Williston Basin in North Dakota, Haynesville/Cotton Valley in northwestern Louisiana, Uinta Basin in eastern Utah, and other proven properties in Wyoming, Utah, and Colorado. As of December 31, 2017, it had estimated proved reserves of 684.7 MMboe. The company sells its gas, oil, and natural gas liquids (NGL) to various customers, including wholesale marketers, industrial users, local distribution companies, utilities, and other companies. In addition, it operates an underground gas storage facility. QEP Resources, Inc. is headquartered in Denver, Colorado.

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