Unit (NYSE: UNT) is one of 228 publicly-traded companies in the “Oil & Gas Exploration and Production” industry, but how does it compare to its peers? We will compare Unit to related businesses based on the strength of its profitability, valuation, earnings, analyst recommendations, institutional ownership, dividends and risk.

Insider and Institutional Ownership

95.2% of Unit shares are owned by institutional investors. Comparatively, 61.8% of shares of all “Oil & Gas Exploration and Production” companies are owned by institutional investors. 3.3% of Unit shares are owned by insiders. Comparatively, 12.6% 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 will outperform the market over the long term.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Unit and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Unit 0 3 2 0 2.40
Unit Competitors 1472 7663 12436 259 2.53

Unit presently has a consensus target price of $24.60, indicating a potential upside of 24.62%. As a group, “Oil & Gas Exploration and Production” companies have a potential upside of 37.50%. Given Unit’s peers stronger consensus rating and higher probable upside, analysts clearly believe Unit has less favorable growth aspects than its peers.

Valuation & Earnings

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

Gross Revenue Net Income Price/Earnings Ratio
Unit $602.18 million -$135.62 million 33.46
Unit Competitors $1.86 billion -$439.03 million -25.56

Unit’s peers have higher revenue, but lower earnings than Unit. Unit 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.

Profitability

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

Net Margins Return on Equity Return on Assets
Unit 4.28% 2.33% 1.14%
Unit Competitors -281.07% 24.54% 5.77%

Volatility and Risk

Unit has a beta of 2.9, indicating that its stock price is 190% more volatile than the S&P 500. Comparatively, Unit’s peers have a beta of 1.38, indicating that their average stock price is 38% more volatile than the S&P 500.

Summary

Unit peers beat Unit on 8 of the 13 factors compared.

Unit Company Profile

Unit Corporation is an oil and natural gas contract drilling company. The Company has operations in the exploration and production and mid-stream areas. The Company operates through three segments: Oil and Natural Gas, Contract Drilling and Mid-Stream. It is primarily engaged in the exploration, development, acquisition, and production of oil and natural gas properties, the land contract drilling of natural gas and oil wells, and the buying, selling, gathering, processing and treating of natural gas. Its Oil and Natural Gas operations are carried out by its subsidiary Unit Petroleum Company. Contract Drilling operations are carried out by its subsidiary Unit Drilling Company. Its drills onshore oil and natural gas wells for its own account, as well as for other oil and natural gas companies. Its Mid-Stream operations are carried out by its subsidiary Superior Pipeline Company, L.L.C. Its mid-stream operations consist of buying, selling, gathering, processing and treating natural gas.

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