Critical Comparison: Whitecap Resources (SPGYF) & The Competition

Whitecap Resources (OTCMKTS:SPGYF) is one of 395 publicly-traded companies in the “Oil & Gas E&P” industry, but how does it contrast to its peers? We will compare Whitecap Resources to similar businesses based on the strength of its analyst recommendations, earnings, profitability, risk, valuation, institutional ownership and dividends.

Institutional and Insider Ownership

37.2% of Whitecap Resources shares are held by institutional investors. Comparatively, 19.4% of shares of all “Oil & Gas E&P” companies are held by institutional investors. 25.8% of shares of all “Oil & Gas E&P” companies are held by 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.

Profitability

This table compares Whitecap Resources and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Whitecap Resources	N/A	N/A	N/A
Whitecap Resources Competitors	-10.00%	4.06%	3.06%

Dividends

Whitecap Resources pays an annual dividend of $0.63 per share and has a dividend yield of 8.3%. Whitecap Resources pays out 47.3% of its earnings in the form of a dividend. As a group, “Oil & Gas E&P” companies pay a dividend yield of 9.4% and pay out 88.2% of their earnings in the form of a dividend.

Valuation and Earnings

This table compares Whitecap Resources and its peers top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Whitecap Resources	N/A	N/A	5.72
Whitecap Resources Competitors	$729.31 million	$111.89 million	7.36

Whitecap Resources’ peers have higher revenue and earnings than Whitecap Resources. Whitecap Resources is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a summary of current ratings and recommmendations for Whitecap Resources and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Whitecap Resources	0	0	0	0	N/A
Whitecap Resources Competitors	695	4676	8682	361	2.60

As a group, “Oil & Gas E&P” companies have a potential upside of 71.58%. Given Whitecap Resources’ peers higher probable upside, analysts plainly believe Whitecap Resources has less favorable growth aspects than its peers.

Summary

Whitecap Resources peers beat Whitecap Resources on 7 of the 10 factors compared.

Whitecap Resources Company Profile

Whitecap Resources Inc., an oil and gas company, focuses on the acquisition, development, and production of oil and gas assets in Western Canada. The company's primary areas of focus of its development programs are in Northern Alberta and British Columbia, Central Alberta, and Saskatchewan. The company was founded in 2009 and is headquartered in Calgary, Canada.