Royal Dutch Shell PLC (NYSE: RDS.B) is one of 20 public companies in the “Integrated Oil & Gas” industry, but how does it contrast to its competitors? We will compare Royal Dutch Shell PLC to similar businesses based on the strength of its valuation, institutional ownership, analyst recommendations, dividends, risk, earnings and profitability.

Insider & Institutional Ownership

5.0% of Royal Dutch Shell PLC shares are held by institutional investors. Comparatively, 39.0% of shares of all “Integrated Oil & Gas” companies are held by institutional investors. 1.0% of Royal Dutch Shell PLC shares are held by company insiders. Comparatively, 9.8% of shares of all “Integrated Oil & Gas” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Royal Dutch Shell PLC and its competitors revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Royal Dutch Shell PLC $233.59 billion $4.58 billion 24.61
Royal Dutch Shell PLC Competitors $78.29 billion $113.43 million -191.68

Royal Dutch Shell PLC has higher revenue and earnings than its competitors. Royal Dutch Shell PLC is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Dividends

Royal Dutch Shell PLC pays an annual dividend of $3.76 per share and has a dividend yield of 5.9%. Royal Dutch Shell PLC pays out 145.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Integrated Oil & Gas” companies pay a dividend yield of 3.7% and pay out 123.1% of their earnings in the form of a dividend.

Analyst Ratings

This is a summary of current ratings and recommmendations for Royal Dutch Shell PLC and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Royal Dutch Shell PLC 0 1 0 0 2.00
Royal Dutch Shell PLC Competitors 216 670 782 31 2.37

As a group, “Integrated Oil & Gas” companies have a potential upside of 27.15%. Given Royal Dutch Shell PLC’s competitors stronger consensus rating and higher possible upside, analysts plainly believe Royal Dutch Shell PLC has less favorable growth aspects than its competitors.

Profitability

This table compares Royal Dutch Shell PLC and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Royal Dutch Shell PLC 3.74% 6.64% 3.13%
Royal Dutch Shell PLC Competitors -7.88% 1.77% 0.73%

Risk & Volatility

Royal Dutch Shell PLC has a beta of 1.13, indicating that its share price is 13% more volatile than the S&P 500. Comparatively, Royal Dutch Shell PLC’s competitors have a beta of 1.35, indicating that their average share price is 35% more volatile than the S&P 500.

Summary

Royal Dutch Shell PLC competitors beat Royal Dutch Shell PLC on 8 of the 15 factors compared.

Royal Dutch Shell PLC Company Profile

The Royal Dutch Shell plc explores for crude oil and natural gas around the world, both in conventional fields and from sources, such as tight rock, shale and coal formations. The Company’s segments include Integrated Gas, Upstream, Downstream and Corporate. The Integrated Gas segment is engaged in the liquefaction and transportation of gas and the conversion of natural gas to liquids to provide fuels and other products, as well as projects with an integrated activity, ranging from producing to commercializing gas. The Upstream segment includes the operations of Upstream, which is engaged in the exploration for and extraction of crude oil, natural gas and natural gas liquids, and the marketing and transportation of oil and gas, and Oil Sands, which is engaged in the extraction of bitumen from mined oil sands and conversion into synthetic crude oil. The Downstream segment is engaged in oil products and chemicals manufacturing, and marketing activities.

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