Financial Contrast: WPX Energy (WPX) versus Kosmos Energy (KOS)

WPX Energy (NYSE: KOS) and Kosmos Energy (NYSE:KOS) are both mid-cap oils/energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, dividends, profitability, risk and earnings.

Volatility and Risk

WPX Energy has a beta of 2.3, indicating that its share price is 130% more volatile than the S&P 500. Comparatively, Kosmos Energy has a beta of 1.51, indicating that its share price is 51% more volatile than the S&P 500.



Insider & Institutional Ownership

94.6% of WPX Energy shares are held by institutional investors. Comparatively, 99.1% of Kosmos Energy shares are held by institutional investors. 1.5% of WPX Energy shares are held by insiders. Comparatively, 3.8% of Kosmos Energy shares 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.

Analyst Recommendations

This is a summary of current recommendations for WPX Energy and Kosmos Energy, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
WPX Energy 0 1 21 1 3.00
Kosmos Energy 0 2 9 0 2.82

WPX Energy presently has a consensus price target of $21.77, indicating a potential upside of 19.43%. Kosmos Energy has a consensus price target of $9.33, indicating a potential upside of 10.91%. Given WPX Energy’s stronger consensus rating and higher possible upside, equities research analysts clearly believe WPX Energy is more favorable than Kosmos Energy.

Valuation & Earnings

This table compares WPX Energy 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
WPX Energy $1.34 billion 5.73 -$16.00 million ($0.42) -43.40
Kosmos Energy $636.84 million 5.26 -$222.79 million ($0.33) -25.48

WPX Energy has higher revenue and earnings than Kosmos Energy. WPX Energy is trading at a lower price-to-earnings ratio than Kosmos Energy, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares WPX Energy and Kosmos Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
WPX Energy -30.02% -0.97% -0.46%
Kosmos Energy -49.78% -15.21% -4.39%

Summary

WPX Energy beats Kosmos Energy on 11 of the 15 factors compared between the two stocks.

WPX Energy Company Profile

WPX Energy, Inc., an independent oil and natural gas exploration and production company, engages in the exploitation and development of unconventional properties in the United States. The company's principal areas of operation include the Delaware Basin in Texas and New Mexico; the Williston Basin in North Dakota; and the San Juan Basin in New Mexico and Colorado. As of December 31, 2017, it had proved reserves of 436 million barrels of oil equivalent. The company was incorporated in 2011 and is headquartered in Tulsa, Oklahoma.

Kosmos Energy Company Profile

Kosmos Energy Ltd. explores for and produces oil and gas in Africa and South America. Its asset portfolio includes production and other development projects in offshore Ghana and Equatorial Guinea; and exploration potential in offshore Mauritania and Senegal, as well as exploration licenses in offshore Cote d'Ivoire, Equatorial Guinea, Morocco, Sao Tome and Principe, and Suriname. The company was founded in 2003 and is based in Hamilton, Bermuda.

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