Contrasting Kosmos Energy (NYSE:KOS) and FEC Resources (NYSE:FECOF)

Kosmos Energy (NYSE:KOS) and FEC Resources (OTCMKTS:FECOF) are both oils/energy companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Kosmos Energy and FEC Resources, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Kosmos Energy 0 2 7 0 2.78
FEC Resources 0 0 0 0 N/A

Kosmos Energy presently has a consensus price target of $9.04, indicating a potential upside of 54.76%. Given Kosmos Energy’s higher possible upside, equities analysts plainly believe Kosmos Energy is more favorable than FEC Resources.

Risk and Volatility

Kosmos Energy has a beta of 2.03, suggesting that its stock price is 103% more volatile than the S&P 500. Comparatively, FEC Resources has a beta of 0.16, suggesting that its stock price is 84% less volatile than the S&P 500.

Profitability

This table compares Kosmos Energy and FEC Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Kosmos Energy -9.02% -21.59% -4.77%
FEC Resources N/A -12.51% -12.22%

Earnings and Valuation

This table compares Kosmos Energy and FEC Resources’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Kosmos Energy $902.37 million 2.60 -$93.99 million ($0.47) -12.43
FEC Resources N/A N/A -$230,000.00 N/A N/A

FEC Resources has lower revenue, but higher earnings than Kosmos Energy.

Insider & Institutional Ownership

97.3% of Kosmos Energy shares are owned by institutional investors. 3.8% of Kosmos Energy shares are owned by company 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.

Dividends

Kosmos Energy pays an annual dividend of $0.18 per share and has a dividend yield of 3.1%. FEC Resources does not pay a dividend. Kosmos Energy pays out -38.3% of its earnings in the form of a dividend.

Summary

Kosmos Energy beats FEC Resources on 9 of the 12 factors compared between the two stocks.

About Kosmos Energy

Kosmos Energy Ltd., a deepwater independent oil and gas exploration and production company, focuses along the Atlantic Margins. Its primary assets include production offshore Ghana, Equatorial Guinea, and U.S. Gulf of Mexico, as well as a gas development offshore Mauritania and Senegal. The company also maintains an exploration program balanced between proven basin infrastructure-led exploration, emerging basins, and frontier basins. Kosmos Energy Ltd. was founded in 2003 and is headquartered in Dallas, Texas.

About FEC Resources

FEC Resources Inc. engages in the exploration and development of oil and gas properties in the Philippines. The company, through its interest in, Forum Energy Limited, owns a 70% interest in the Service Contract 72, an offshore license located to the north west of the Philippine Island of Palawan. It also owns 8.46%, 12.40%, and 19.46% interests in the Service Contract 14 Block A Nido, Block B Matinloc, and Block B1 North Matinloc located in the offshore northwest Palawan; and a 66.67% interest in the Service Contract 40 North Cebu covering an area of 340,000 hectares in the northern part of Cebu Island and adjacent offshore areas located in the Visayan Basin in the central part of the Philippine Archipelago. The company is headquartered in North Sydney, Australia. FEC Resources Inc. is a subsidiary of PXP Energy Corporation.

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