Critical Comparison: Pioneer Natural Resources (PXD) vs. Kosmos Energy (KOS)
Pioneer Natural Resources (NYSE: PXD) and Kosmos Energy (NYSE:KOS) are both oils/energy companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.
This table compares Pioneer Natural Resources and Kosmos Energy’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Pioneer Natural Resources||13.69%||3.45%||2.25%|
Pioneer Natural Resources pays an annual dividend of $0.32 per share and has a dividend yield of 0.2%. Kosmos Energy does not pay a dividend. Pioneer Natural Resources pays out 14.8% of its earnings in the form of a dividend.
Valuation and Earnings
This table compares Pioneer Natural Resources and Kosmos Energy’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Pioneer Natural Resources||$5.46 billion||6.03||$833.00 million||$2.16||89.43|
|Kosmos Energy||$636.84 million||4.14||-$222.79 million||($0.33)||-20.21|
Pioneer Natural Resources has higher revenue and earnings than Kosmos Energy. Kosmos Energy is trading at a lower price-to-earnings ratio than Pioneer Natural Resources, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Pioneer Natural Resources has a beta of 0.95, indicating that its stock price is 5% less volatile than the S&P 500. Comparatively, Kosmos Energy has a beta of 1.52, indicating that its stock price is 52% more volatile than the S&P 500.
Institutional and Insider Ownership
89.4% of Pioneer Natural Resources shares are owned by institutional investors. Comparatively, 98.7% of Kosmos Energy shares are owned by institutional investors. 0.9% of Pioneer Natural Resources shares are owned by insiders. Comparatively, 3.8% of Kosmos Energy shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This is a summary of current recommendations and price targets for Pioneer Natural Resources and Kosmos Energy, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Pioneer Natural Resources||0||3||26||1||2.93|
Pioneer Natural Resources currently has a consensus price target of $216.83, suggesting a potential upside of 12.25%. Kosmos Energy has a consensus price target of $9.36, suggesting a potential upside of 40.38%. Given Kosmos Energy’s higher possible upside, analysts clearly believe Kosmos Energy is more favorable than Pioneer Natural Resources.
Pioneer Natural Resources beats Kosmos Energy on 12 of the 17 factors compared between the two stocks.
Pioneer Natural Resources Company Profile
Pioneer Natural Resources Company operates as an independent oil and gas exploration and production company in the United States. The company explores for, develops, and produces oil, natural gas liquids (NGLs), and gas. It has operations primarily in the Permian Basin in West Texas, the Eagle Ford Shale play in South Texas, the Raton field in southeast Colorado, and the West Panhandle field in the Texas Panhandle. As of December 31, 2017, the company had proved undeveloped reserves and proved developed reserves of approximately 45 million barrels of oil, 22 million barrels of NGLs, and 291 billion cubic feet of gas; and owned interests in 10 gas processing plants and 4 treating facilities. Pioneer Natural Resources Company is headquartered in Irving, Texas.
Kosmos Energy Company Profile
Kosmos Energy Ltd. (Kosmos) is an independent oil and gas exploration and production company. The Company is focused on the emerging areas along the Atlantic Margins. Its assets include existing production and development projects offshore Ghana, discoveries and further exploration potential offshore Mauritania and Senegal, as well as exploration licenses with hydrocarbon potential offshore Sao Tome and Principe, Suriname, Morocco and Western Sahara. The Company has operations in Africa and South America. The West Cape Three Points (WCTP) Block and Deepwater Tano (DT) Block are located within the Tano Basin, offshore Ghana. The Tano Basin represents the eastern extension of the Deep Ivorian Basin, which resulted from the development of an extensional sedimentary basin caused by tensional forces associated with opening of the Atlantic Ocean, as South America separated from Africa in the Mid-Cretaceous period.
Receive News & Ratings for Pioneer Natural Resources Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Pioneer Natural Resources and related companies with MarketBeat.com's FREE daily email newsletter.