Pengrowth Energy (OTCMKTS:PGHEF) & EQT (NYSE:EQT) Critical Review

Pengrowth Energy (OTCMKTS:PGHEF) and EQT (NYSE:EQT) are both energy companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Insider and Institutional Ownership

0.5% of Pengrowth Energy shares are held by institutional investors. Comparatively, 90.8% of EQT shares are held by institutional investors. 0.7% of EQT shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Risk and Volatility

Pengrowth Energy has a beta of 1.99, suggesting that its share price is 99% more volatile than the S&P 500. Comparatively, EQT has a beta of 0.59, suggesting that its share price is 41% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Pengrowth Energy and EQT, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pengrowth Energy	0	0	0	0	0.00
EQT	1	4	13	0	2.67

EQT has a consensus price target of $57.11, indicating a potential upside of 2.76%. Given EQT’s stronger consensus rating and higher probable upside, analysts clearly believe EQT is more favorable than Pengrowth Energy.

Profitability

This table compares Pengrowth Energy and EQT’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pengrowth Energy	-147.21%	-193.94%	-25.06%
EQT	4.37%	4.35%	2.51%

Valuation and Earnings

This table compares Pengrowth Energy and EQT”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pengrowth Energy	$408.45 million	0.06	-$431.50 million	N/A	N/A
EQT	$6.34 billion	5.25	$1.74 billion	$0.57	97.50

EQT has higher revenue and earnings than Pengrowth Energy.

Summary

EQT beats Pengrowth Energy on 11 of the 12 factors compared between the two stocks.

About Pengrowth Energy

Pengrowth Energy Corporation, a resource company, explores for, develops, and produces oil and natural gas assets in Alberta, British Columbia, Saskatchewan, and Nova Scotia provinces in Canada. The company explores for crude oil, bitumen, natural gas, shale gas, and natural gas liquids. Its principal producing properties are the Lindbergh thermal property covering an area of 20,800 net acres located in Alberta; and Groundbirch property totaling an area of 12,536 net acres located to the south west of Fort St. John, British Columbia. As of December 31, 2018, the company had 269 net producing oil and natural gas wells; and 586 net non-producing wells, as well as total proved plus probable reserves of 446.6 millions of barrels of oil equivalent. Pengrowth Energy Corporation was founded in 1988 and is headquartered in Calgary, Canada.

About EQT

EQT Corporation operates as a natural gas production company in the United States. The company sells natural gas and natural gas liquids to marketers, utilities, and industrial customers through pipelines located in the Appalachian Basin. It also offers marketing services and contractual pipeline capacity management services. The company was formerly known as Equitable Resources Inc. and changed its name to EQT Corporation in February 2009. EQT Corporation was founded in 1878 and is headquartered in Pittsburgh, Pennsylvania.