Unit (NYSE:UNT) and Encana (NYSE:ECA) are both oils/energy companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, dividends, profitability, institutional ownership, analyst recommendations and risk.
Encana pays an annual dividend of $0.08 per share and has a dividend yield of 1.9%. Unit does not pay a dividend. Encana pays out 9.3% of its earnings in the form of a dividend.
This table compares Unit and Encana’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation & Earnings
This table compares Unit and Encana’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Unit||$843.28 million||0.18||-$45.29 million||$1.00||2.77|
|Encana||$5.94 billion||0.94||$1.07 billion||$0.86||4.81|
Encana has higher revenue and earnings than Unit. Unit is trading at a lower price-to-earnings ratio than Encana, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
86.8% of Unit shares are held by institutional investors. Comparatively, 71.4% of Encana shares are held by institutional investors. 5.2% of Unit shares are held by insiders. Comparatively, 0.1% of Encana shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
This is a summary of current recommendations and price targets for Unit and Encana, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Unit currently has a consensus target price of $19.67, suggesting a potential upside of 609.99%. Encana has a consensus target price of $10.30, suggesting a potential upside of 148.77%. Given Unit’s higher probable upside, equities analysts plainly believe Unit is more favorable than Encana.
Risk & Volatility
Unit has a beta of 2.54, suggesting that its stock price is 154% more volatile than the S&P 500. Comparatively, Encana has a beta of 2, suggesting that its stock price is 100% more volatile than the S&P 500.
Encana beats Unit on 10 of the 16 factors compared between the two stocks.
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.
Encana Corporation, together with its subsidiaries, engages in the exploration, development, production, and marketing of natural gas, oil, and natural gas liquids. It holds interests in various assets, including the Montney in northeast British Columbia and northwest Alberta; Duvernay in west central Alberta; and other upstream operations comprising Wheatland in southern Alberta, Horn River in northeast British Columbia, and Deep Panuke located in offshore Nova Scotia in Canada. The company also owns interests in assets consisting of the Eagle Ford in south Texas and Permian in west Texas. It primarily markets its products to refiners, local distributing companies, energy marketing companies, and electronic exchanges. The company was founded in 1971 and is based in Calgary, Canada.
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