Pioneer Natural Resources (NYSE:PXD) and Galp Energia, SGPS (OTCMKTS:GLPEY) are both oils/energy companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, profitability, dividends, risk and earnings.
Risk & Volatility
Pioneer Natural Resources has a beta of 1.92, suggesting that its share price is 92% more volatile than the S&P 500. Comparatively, Galp Energia, SGPS has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500.
Profitability
This table compares Pioneer Natural Resources and Galp Energia, SGPS's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Pioneer Natural Resources | 2.30% | 4.67% | 2.97% |
Galp Energia, SGPS | -3.32% | -2.83% | -1.10% |
Analyst Ratings
This is a breakdown of current ratings and target prices for Pioneer Natural Resources and Galp Energia, SGPS, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Pioneer Natural Resources | 0 | 2 | 21 | 1 | 2.96 |
Galp Energia, SGPS | 0 | 6 | 4 | 0 | 2.40 |
Pioneer Natural Resources currently has a consensus price target of $140.0435, suggesting a potential downside of 9.12%. Given Pioneer Natural Resources' stronger consensus rating and higher probable upside, research analysts plainly believe Pioneer Natural Resources is more favorable than Galp Energia, SGPS.
Insider and Institutional Ownership
89.9% of Pioneer Natural Resources shares are held by institutional investors. Comparatively, 0.1% of Galp Energia, SGPS shares are held by institutional investors. 0.9% of Pioneer Natural Resources shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Earnings & Valuation
This table compares Pioneer Natural Resources and Galp Energia, SGPS's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Pioneer Natural Resources | $9.30 billion | 2.73 | $756 million | $8.18 | 18.85 |
Galp Energia, SGPS | $17.88 billion | 0.54 | $435.68 million | $0.26 | 22.38 |
Pioneer Natural Resources has higher earnings, but lower revenue than Galp Energia, SGPS. Pioneer Natural Resources is trading at a lower price-to-earnings ratio than Galp Energia, SGPS, indicating that it is currently the more affordable of the two stocks.
Dividends
Pioneer Natural Resources pays an annual dividend of $2.20 per share and has a dividend yield of 1.4%. Galp Energia, SGPS pays an annual dividend of $0.14 per share and has a dividend yield of 2.4%. Pioneer Natural Resources pays out 26.9% of its earnings in the form of a dividend. Galp Energia, SGPS pays out 53.8% 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. Pioneer Natural Resources has raised its dividend for 2 consecutive years.
Summary
Pioneer Natural Resources beats Galp Energia, SGPS on 16 of the 18 factors compared between the two stocks.