RSP Permian (NYSE: RSPP) is one of 226 publicly-traded companies in the “Oil & Gas Exploration and Production” industry, but how does it compare to its peers? We will compare RSP Permian to similar companies based on the strength of its analyst recommendations, dividends, valuation, risk, earnings, institutional ownership and profitability.

Institutional and Insider Ownership

83.8% of RSP Permian shares are owned by institutional investors. Comparatively, 60.8% of shares of all “Oil & Gas Exploration and Production” companies are owned by institutional investors. 15.0% of RSP Permian shares are owned by insiders. Comparatively, 12.2% of shares of all “Oil & Gas Exploration and Production” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for RSP Permian and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
RSP Permian 0 1 21 1 3.00
RSP Permian Competitors 1432 7410 12073 253 2.53

RSP Permian currently has a consensus price target of $47.05, suggesting a potential upside of 26.16%. As a group, “Oil & Gas Exploration and Production” companies have a potential upside of 39.88%. Given RSP Permian’s peers higher possible upside, analysts clearly believe RSP Permian has less favorable growth aspects than its peers.

Risk and Volatility

RSP Permian has a beta of 2.15, meaning that its stock price is 115% more volatile than the S&P 500. Comparatively, RSP Permian’s peers have a beta of 1.39, meaning that their average stock price is 39% more volatile than the S&P 500.

Profitability

This table compares RSP Permian and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
RSP Permian 13.69% 2.32% 1.61%
RSP Permian Competitors -474.85% 25.81% 5.98%

Valuation and Earnings

This table compares RSP Permian and its peers gross revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
RSP Permian $353.86 million -$24.85 million 61.13
RSP Permian Competitors $1.86 billion -$439.03 million -362.59

RSP Permian’s peers have higher revenue, but lower earnings than RSP Permian. RSP Permian is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Summary

RSP Permian beats its peers on 9 of the 13 factors compared.

RSP Permian Company Profile

RSP Permian, Inc. is an independent oil and natural gas company. The Company is engaged in the acquisition, exploration, development and production of unconventional oil and associated liquids-rich natural gas reserves in the Permian Basin of West Texas. The Company’s properties are located on contiguous acreage blocks in the Midland Basin, and the Delaware Basin, both sub-basins of the Permian Basin. The Midland Basin properties are primarily in the adjacent counties of Midland, Martin, Andrews, Ector, Glasscock and Dawson. The Delaware Basin properties are in Loving and Winkler counties. The Company has drilled Lower Spraberry horizontal well and a Middle Spraberry horizontal well in the Permian Basin. In addition, it has also drilled a Wolfcamp B horizontal well in the North Midland Basin.

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