Contrasting Laredo Petroleum (LPI) and its Competitors

Laredo Petroleum (NYSE: LPI) is one of 240 publicly-traded companies in the “Oil & Gas Exploration and Production” industry, but how does it compare to its rivals? We will compare Laredo Petroleum to related businesses based off the strength of its institutional ownership, valuation, dividends, profitability, earnings, risk and analyst recommendations.

Profitability

This table compares Laredo Petroleum and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Laredo Petroleum 16.73% 49.15% 6.36%
Laredo Petroleum Competitors -440.03% 3.68% 0.74%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Laredo Petroleum and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Laredo Petroleum 2 8 8 0 2.33
Laredo Petroleum Competitors 1566 7858 12147 267 2.51

Laredo Petroleum currently has a consensus target price of $14.67, suggesting a potential upside of 25.73%. All “Oil & Gas Exploration and Production” companies have a potential upside of 49.30%. Given Laredo Petroleum’s rivals stronger consensus rating and higher probable upside, analysts clearly believe Laredo Petroleum has less favorable growth aspects than its rivals.

Earnings and Valuation

This table compares Laredo Petroleum and its rivals revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Laredo Petroleum $720.06 million $195.80 million 23.82
Laredo Petroleum Competitors $1.39 billion $604.75 million 20.23

Laredo Petroleum’s rivals have higher revenue and earnings than Laredo Petroleum. Laredo Petroleum is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently the more expensive than other companies in its industry.

Insider and Institutional Ownership

63.1% of shares of all “Oil & Gas Exploration and Production” companies are owned by institutional investors. 1.4% of Laredo Petroleum shares are owned by insiders. Comparatively, 11.5% of shares of all “Oil & Gas Exploration and Production” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk and Volatility

Laredo Petroleum has a beta of 1.44, suggesting that its share price is 44% more volatile than the S&P 500. Comparatively, Laredo Petroleum’s rivals have a beta of 1.41, suggesting that their average share price is 41% more volatile than the S&P 500.

Summary

Laredo Petroleum rivals beat Laredo Petroleum on 8 of the 13 factors compared.

About Laredo Petroleum

Laredo Petroleum, Inc. (Laredo) is an independent energy company. The Company is focused on the acquisition, exploration and development of oil and natural gas properties, and the transportation of oil and natural gas from such properties primarily in the Permian Basin in West Texas. It operates through two segments: Exploration and production of oil and natural gas properties, and Midstream and marketing. The exploration and production of oil and natural gas properties are conducted by it through the exploration and development of its acreage in the Permian Basin. As of December 31, 2016, it had assembled 127,847 net acres in the Permian Basin and had total proved reserves, presented on a three-stream basis, of 167,100 thousand of barrels of oil equivalent (MBOE). The Midstream and marketing segment’s operations are conducted by its subsidiary, Laredo Midstream Services, LLC, which buys, sells, gathers and transports oil, natural gas and water primarily for the account of Laredo.

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