Legacy Reserves (LGCY) vs. Its Competitors Head-To-Head Comparison

Legacy Reserves (NASDAQ: LGCY) is one of 242 publicly-traded companies in the “Oil & Gas Exploration and Production” industry, but how does it contrast to its rivals? We will compare Legacy Reserves to related companies based on the strength of its valuation, analyst recommendations, institutional ownership, profitability, dividends, earnings and risk.

Earnings & Valuation

This table compares Legacy Reserves and its rivals revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Legacy Reserves $314.36 million -$55.82 million -0.77
Legacy Reserves Competitors $1.87 billion -$438.84 million -47.59

Legacy Reserves’ rivals have higher revenue, but lower earnings than Legacy Reserves. Legacy Reserves is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Volatility and Risk

Legacy Reserves has a beta of 2.54, suggesting that its stock price is 154% more volatile than the S&P 500. Comparatively, Legacy Reserves’ rivals have a beta of 1.39, suggesting that their average stock price is 39% more volatile than the S&P 500.

Profitability

This table compares Legacy Reserves and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Legacy Reserves -34.07% N/A -3.74%
Legacy Reserves Competitors -430.33% 12.32% 4.94%

Institutional and Insider Ownership

20.6% of Legacy Reserves shares are held by institutional investors. Comparatively, 61.7% of shares of all “Oil & Gas Exploration and Production” companies are held by institutional investors. 26.7% of Legacy Reserves shares are held by insiders. Comparatively, 12.2% of shares of all “Oil & Gas Exploration and Production” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Legacy Reserves and its rivals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Legacy Reserves 1 2 0 0 1.67
Legacy Reserves Competitors 1453 7549 12208 253 2.52

Legacy Reserves currently has a consensus target price of $1.88, indicating a potential upside of 14.84%. As a group, “Oil & Gas Exploration and Production” companies have a potential upside of 33.57%. Given Legacy Reserves’ rivals stronger consensus rating and higher possible upside, analysts plainly believe Legacy Reserves has less favorable growth aspects than its rivals.

Summary

Legacy Reserves rivals beat Legacy Reserves on 8 of the 12 factors compared.

Legacy Reserves Company Profile

Legacy Reserves LP (Legacy) is a master limited partnership company. The Company focuses on the acquisition and development of oil and natural gas properties located in the Permian Basin, East Texas, Rocky Mountain and Mid-Continent regions of the United States. As of December 31, 2016, the Company had proved reserves of approximately 144.8 million barrels of crude oil equivalent (MMBoe), of which 72% were natural gas, 28% were oil and natural gas liquids (NGLs) and 94% were classified as proved developed producing. As of December 31, 2016, the Company owned interests in producing oil and natural gas properties in 627 fields in the Permian Basin, East Texas, Piceance Basin of Colorado, Texas Panhandle, Wyoming, North Dakota, Montana, Oklahoma and various other states, from 10,775 gross productive wells, of which 3,799 were operated and 6,976 were non-operated. The Company’s fields and regions include East Texas, Piceance Basin, Spraberry/War San, Lea, Texas Panhandle and Deep Rock.

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