Head to Head Analysis: Galp Energia SGPS (GLPEY) versus Its Peers

Galp Energia SGPS (OTCMKTS:GLPEY) is one of 1,051 public companies in the “Oil, Gas & Consumable Fuels” industry, but how does it weigh in compared to its peers? We will compare Galp Energia SGPS to related businesses based on the strength of its profitability, valuation, institutional ownership, earnings, dividends, risk and analyst recommendations.

Profitability

This table compares Galp Energia SGPS and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Galp Energia SGPS	4.55%	28.78%	9.53%
Galp Energia SGPS Competitors	-456.96%	19.46%	6.50%

Risk and Volatility

Galp Energia SGPS has a beta of 0.07, indicating that its stock price is 93% less volatile than the S&P 500. Comparatively, Galp Energia SGPS’s peers have a beta of -3.76, indicating that their average stock price is 476% less volatile than the S&P 500.

Dividends

Galp Energia SGPS pays an annual dividend of $0.18 per share and has a dividend yield of 1.7%. Galp Energia SGPS pays out 22.2% of its earnings in the form of a dividend. As a group, “Oil, Gas & Consumable Fuels” companies pay a dividend yield of 9.2% and pay out -133.7% of their earnings in the form of a dividend. Galp Energia SGPS lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Recommendations

This is a summary of current recommendations and price targets for Galp Energia SGPS and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Galp Energia SGPS	0	5	3	1	2.56
Galp Energia SGPS Competitors	5982	26994	40850	2423	2.52

As a group, “Oil, Gas & Consumable Fuels” companies have a potential upside of 28.97%. Given Galp Energia SGPS’s peers higher possible upside, analysts plainly believe Galp Energia SGPS has less favorable growth aspects than its peers.

Earnings and Valuation

This table compares Galp Energia SGPS and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Galp Energia SGPS	$22.89 billion	$1.27 billion	13.15
Galp Energia SGPS Competitors	$14.81 billion	$5.51 billion	-0.95

Galp Energia SGPS has higher revenue, but lower earnings than its peers. Galp Energia SGPS is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Insider and Institutional Ownership

30.8% of shares of all “Oil, Gas & Consumable Fuels” companies are owned by institutional investors. 15.3% of shares of all “Oil, Gas & Consumable Fuels” companies are owned by 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.

Summary

Galp Energia SGPS beats its peers on 8 of the 15 factors compared.

Galp Energia SGPS Company Profile

Galp Energia, SGPS, S.A. operates as an integrated energy operator in Portugal and internationally. The company operates through four segments: Upstream, Industrial & Midstream, Commercial, and Renewables and New Business. The Upstream segment engages in the exploration, development, and production of hydrocarbons primarily in Brazil, Mozambique, Namibia, and Angola. The Industrial & Midstream segment owns refineries in Portugal, as well as is involved in activities related to energy management of oil products, gas, and electricity. This segment provides storage and transportation infrastructure for oil and gas products, as well as engages in the sale of electricity to the grid in Portugal and Spain. The Commercial segment is involved in the areas of retail to final business-to-business and business to consumer customers of oil, gas, and electricity. The Renewables and New Business segment is involved in the development of solar and wind power generation projects in Portugal and Spain. In addition, it produces lithium-ion batteries, hydrogen, and biofuels; and operates service stations. Further, the company engages in the reinsurance business. The company was formerly known as Galp Petróleos e Gás de Portugal, SGPS, S.A. and changed its name to Galp Energia, SGPS, S.A. in September 2000. Galp Energia, SGPS, S.A. was incorporated in 1999 and is headquartered in Lisbon, Portugal.