Concho Resources (NYSE:CXO) and GALP ENERGIA SG/ADR (OTCMKTS:GLPEY) are both large-cap oils/energy companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, dividends, risk, valuation, profitability and analyst recommendations.
This table compares Concho Resources and GALP ENERGIA SG/ADR’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|GALP ENERGIA SG/ADR||3.53%||10.26%||4.69%|
This table compares Concho Resources and GALP ENERGIA SG/ADR’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Concho Resources||$4.15 billion||3.36||$2.29 billion||$4.59||15.09|
|GALP ENERGIA SG/ADR||$20.46 billion||0.56||$875.12 million||$0.53||12.96|
Concho Resources has higher earnings, but lower revenue than GALP ENERGIA SG/ADR. GALP ENERGIA SG/ADR is trading at a lower price-to-earnings ratio than Concho Resources, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
94.0% of Concho Resources shares are owned by institutional investors. Comparatively, 0.1% of GALP ENERGIA SG/ADR shares are owned by institutional investors. 1.1% of Concho Resources shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Concho Resources pays an annual dividend of $0.50 per share and has a dividend yield of 0.7%. GALP ENERGIA SG/ADR pays an annual dividend of $0.26 per share and has a dividend yield of 3.8%. Concho Resources pays out 10.9% of its earnings in the form of a dividend. GALP ENERGIA SG/ADR pays out 49.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
This is a breakdown of current ratings and target prices for Concho Resources and GALP ENERGIA SG/ADR, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|GALP ENERGIA SG/ADR||1||3||1||0||2.00|
Concho Resources currently has a consensus price target of $147.38, suggesting a potential upside of 112.79%. Given Concho Resources’ stronger consensus rating and higher possible upside, equities analysts plainly believe Concho Resources is more favorable than GALP ENERGIA SG/ADR.
Volatility & Risk
Concho Resources has a beta of 1.15, indicating that its share price is 15% more volatile than the S&P 500. Comparatively, GALP ENERGIA SG/ADR has a beta of 0.82, indicating that its share price is 18% less volatile than the S&P 500.
Concho Resources beats GALP ENERGIA SG/ADR on 13 of the 17 factors compared between the two stocks.
Concho Resources Company Profile
Concho Resources, Inc. engages in the acquisition, development and exploration of oil and natural gas properties. Its operations include Delaware Basin, and Midland Basin. The company was founded on February 22, 2006 and is headquartered in Midland, TX.
GALP ENERGIA SG/ADR Company Profile
Galp Energia, SGPS, S.A. operates as oil and natural gas integrated operator worldwide. It explores, develops, and produces hydrocarbons in approximately 50 projects with proved, probable, and possible reserves of 755 million barrels of oil equivalent. The company also engages in the refining, retail, and wholesale marketing of oil products; operation of oil products storage and transportation infrastructure; and operation of 1,459 service stations in Portugal, Spain, and Africa. In addition, it produces biodiesel and biofuel; and operates 41,400 hectares of palm oil plantation. Further, the company sources, distributes, and supplies natural gas; produces and markets electricity with an installed capacity of 173 MW of thermal plants and 12 MW of wind power. Additionally, it offers business management and consultancy services. The company was formerly known as Galp Petróleos e Gás de Portugal, SGPS, S.A. and changed its name to Galp Energia, SGPS, S.A. in September 2000. Galp Energia, SGPS, S.A. was founded in 1999 and is headquartered in Lisbon, Portugal.
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