Contrasting Ecopetrol (EC) and Its Peers

Ecopetrol (NYSE: EC) is one of 23 publicly-traded companies in the “Integrated Oil & Gas” industry, but how does it contrast to its rivals? We will compare Ecopetrol to related companies based on the strength of its institutional ownership, profitability, analyst recommendations, earnings, valuation, dividends and risk.

Risk and Volatility

Ecopetrol has a beta of 1.04, indicating that its share price is 4% more volatile than the S&P 500. Comparatively, Ecopetrol’s rivals have a beta of 1.39, indicating that their average share price is 39% more volatile than the S&P 500.

Earnings and Valuation

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

Gross Revenue EBITDA Price/Earnings Ratio
Ecopetrol $17.94 billion $6.95 billion 22.59
Ecopetrol Competitors $52.35 billion $11.11 billion 1.57

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

Profitability

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

Net Margins Return on Equity Return on Assets
Ecopetrol 5.04% 3.60% 1.34%
Ecopetrol Competitors -5.74% 2.42% 1.14%

Analyst Ratings

This is a summary of recent recommendations for Ecopetrol and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ecopetrol 0 3 2 0 2.40
Ecopetrol Competitors 215 650 768 31 2.37

Ecopetrol currently has a consensus price target of $10.33, indicating a potential upside of 3.96%. As a group, “Integrated Oil & Gas” companies have a potential upside of 39.37%. Given Ecopetrol’s rivals higher probable upside, analysts clearly believe Ecopetrol has less favorable growth aspects than its rivals.

Insider and Institutional Ownership

2.1% of Ecopetrol shares are held by institutional investors. Comparatively, 41.3% of shares of all “Integrated Oil & Gas” companies are held by institutional investors. 9.8% of shares of all “Integrated Oil & Gas” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Dividends

Ecopetrol pays an annual dividend of $0.16 per share and has a dividend yield of 1.6%. Ecopetrol pays out 36.4% of its earnings in the form of a dividend. As a group, “Integrated Oil & Gas” companies pay a dividend yield of 3.0% and pay out 257.7% of their earnings in the form of a dividend.

Summary

Ecopetrol rivals beat Ecopetrol on 9 of the 15 factors compared.

Ecopetrol Company Profile

Ecopetrol S.A. is an oil company. The Company operates in Colombia, Peru, Brazil and the United States Gulf Coast. The Company’s segments include Exploration and Production, Transportation and Logistics, and Refining, Petrochemicals and Biofuels. The Company’s Exploration and Production segment includes exploration, development and production activities in Colombia and abroad. The Company’s Transportation and Logistics segment includes the transportation of crude oil, motor fuels, fuel oil and other refined products, including diesel and biofuels. The Company’s main crude oil pipeline systems’ operating capacity is approximately 1.34 million barrels per day (BPD). The Company’s main refineries are the Barrancabermeja refinery, which it directly owns and operates, and a refinery in the Free Trade Zone in Cartagena that is operated by Reficar S.A., a subsidiary of the Company. The Company also owns and operates two other minor refineries: Orito and Apiay.

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