Centennial Resource Development (NASDAQ: CDEV) is one of 20 publicly-traded companies in the “Integrated Oil & Gas” industry, but how does it compare to its competitors? We will compare Centennial Resource Development to similar companies based on the strength of its risk, earnings, institutional ownership, valuation, dividends, analyst recommendations and profitability.

Analyst Ratings

This is a breakdown of recent recommendations for Centennial Resource Development and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Centennial Resource Development 0 1 15 0 2.94
Centennial Resource Development Competitors 219 675 791 30 2.37

Centennial Resource Development currently has a consensus price target of $22.71, indicating a potential upside of 12.78%. As a group, “Integrated Oil & Gas” companies have a potential upside of 23.12%. Given Centennial Resource Development’s competitors higher probable upside, analysts plainly believe Centennial Resource Development has less favorable growth aspects than its competitors.

Earnings and Valuation

This table compares Centennial Resource Development and its competitors gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Centennial Resource Development $98.83 million -$226.80 million -17.67
Centennial Resource Development Competitors $78.29 billion $113.43 million -201.34

Centennial Resource Development’s competitors have higher revenue and earnings than Centennial Resource Development. Centennial Resource Development 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.

Profitability

This table compares Centennial Resource Development and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Centennial Resource Development 14.57% 2.12% 2.05%
Centennial Resource Development Competitors -3.94% 3.47% 1.73%

Insider and Institutional Ownership

93.4% of Centennial Resource Development shares are held by institutional investors. Comparatively, 40.5% of shares of all “Integrated Oil & Gas” companies are held by institutional investors. 44.7% of Centennial Resource Development 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 large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Centennial Resource Development beats its competitors on 7 of the 12 factors compared.

About Centennial Resource Development

Centennial Resource Development, Inc. is an independent oil and natural gas company. The Company is focused on the development of unconventional oil and associated liquids-rich natural gas reserves in the Permian Basin. The Company’s assets are concentrated in the Delaware Basin, a sub-basin of the Permian Basin. Its properties consist of large, contiguous acreage blocks in Reeves, Ward and Pecos counties in West Texas. As of December 31, 2016, the Company held approximately 92% membership interest in Centennial Resource Production, LLC (CRP). As of December 31, 2016, its portfolio included 106 operated producing horizontal wells. The horizontal wells span an area of approximately 45 miles long by 20 miles wide where it had commercial production in five zones: the 3rd Bone Spring Sandstone, Upper Wolfcamp A, Lower Wolfcamp A, Wolfcamp B and Wolfcamp C.

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