Critical Review: Unit (UNT) versus EXCO Resources (OTCMKTS:XCOOQ)


EXCO Resources (OTCMKTS:XCOOQ) and Unit (NYSE:UNT) are both small-cap oils/energy companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, earnings, risk and analyst recommendations.

Institutional & Insider Ownership

0.3% of EXCO Resources shares are owned by institutional investors. Comparatively, 88.9% of Unit shares are owned by institutional investors. 1.4% of EXCO Resources shares are owned by company insiders. Comparatively, 5.2% of Unit shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations for EXCO Resources and Unit, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EXCO Resources 0 0 0 0 N/A
Unit 0 6 1 0 2.14

Unit has a consensus price target of $25.50, indicating a potential upside of 116.65%. Given Unit’s higher possible upside, analysts plainly believe Unit is more favorable than EXCO Resources.

Profitability

This table compares EXCO Resources and Unit’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
EXCO Resources -46.37% -3.11% 3.13%
Unit -6.84% 2.79% 1.65%

Earnings and Valuation

This table compares EXCO Resources and Unit’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
EXCO Resources $394.03 million 0.01 -$182.70 million N/A N/A
Unit $843.28 million 0.77 -$45.29 million $1.00 11.77

Unit has higher revenue and earnings than EXCO Resources.

Volatility and Risk

EXCO Resources has a beta of 5.29, meaning that its share price is 429% more volatile than the S&P 500. Comparatively, Unit has a beta of 2.67, meaning that its share price is 167% more volatile than the S&P 500.

Summary

Unit beats EXCO Resources on 9 of the 11 factors compared between the two stocks.

About EXCO Resources

EXCO Resources, Inc., an independent oil and natural gas company, engages in the acquisition, exploration, exploitation, development, and production of onshore oil and natural gas properties with a focus on shale resource plays in the United States. The company holds interests in approximately 96,600 net acres located in the Haynesville and Bossier shales of East Texas and North Louisiana; approximately 48,500 net acres located in the Eagle Ford shale of South Texas; and approximately 234,800 net acres of prospective area located in the Marcellus shale, as well as approximately 69,000 net acres of prospective area located in the Utica shale of the Appalachia region. As of December 31, 2018, it had proved reserves of approximately 660.6 billion cubic feet equivalent of oil and natural gas. The company was founded in 1955 and is based in Dallas, Texas. On January 15, 2018, EXCO Resources, Inc., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the US Bankruptcy Court for the Southern District of Texas.

About Unit

Unit Corporation, together with its subsidiaries, engages in the exploration, acquisition, development, and production of oil and natural gas properties in the United States. It operates through three segments: Oil and Natural Gas, Contract Drilling, and Mid-Stream. The Oil and Natural Gas segment explores for, acquires, develops, and produces oil and natural gas properties. Its producing oil and natural gas properties, unproved properties, and related assets are primarily located in Oklahoma and Texas, as well as in Arkansas, Colorado, Kansas, Louisiana, Montana, New Mexico, North Dakota, Utah, and Wyoming. The Contract Drilling segment is involved in the contract drilling of onshore oil and natural gas wells for a range of other oil and natural gas companies primarily in Oklahoma, Texas, Wyoming, North Dakota, Colorado, and Utah. It has 55 drilling rigs in its fleet. The Mid-Stream segment buys, sells, gathers, processes, and treats natural gas for third parties. This segment operates 3 natural gas treatment plants, 14 processing plants, 22 gathering systems, and approximately 1,475 miles of pipeline in Oklahoma, Texas, Kansas, Pennsylvania, and West Virginia. Unit Corporation was founded in 1963 and is headquartered in Tulsa, Oklahoma.



Receive News & Ratings for EXCO Resources Daily – Enter your email address below to receive a concise daily summary of the latest news and analysts’ ratings for EXCO Resources and related companies with MarketBeat.com’s FREE daily email newsletter.



Source link

Ads

LEAVE A REPLY

Please enter your comment!
Please enter your name here