Continental Resources (NYSE:CLR) and Range Resources (NYSE:RRC) are both oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, dividends, risk, valuation, earnings and institutional ownership.
Earnings and Valuation
This table compares Continental Resources and Range Resources’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Continental Resources||$4.71 billion||3.90||$988.31 million||$2.84||17.22|
|Range Resources||$3.28 billion||0.72||-$1.75 billion||$1.13||8.33|
Continental Resources has higher revenue and earnings than Range Resources. Range Resources is trading at a lower price-to-earnings ratio than Continental Resources, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Continental Resources has a beta of 1.46, meaning that its stock price is 46% more volatile than the S&P 500. Comparatively, Range Resources has a beta of 1.16, meaning that its stock price is 16% more volatile than the S&P 500.
Range Resources pays an annual dividend of $0.08 per share and has a dividend yield of 0.9%. Continental Resources does not pay a dividend. Range Resources pays out 7.1% of its earnings in the form of a dividend.
This table compares Continental Resources and Range Resources’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current recommendations and price targets for Continental Resources and Range Resources, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Continental Resources currently has a consensus price target of $64.48, indicating a potential upside of 31.86%. Range Resources has a consensus price target of $17.79, indicating a potential upside of 89.05%. Given Range Resources’ higher probable upside, analysts clearly believe Range Resources is more favorable than Continental Resources.
Institutional and Insider Ownership
21.5% of Continental Resources shares are owned by institutional investors. 76.8% of Continental Resources shares are owned by company insiders. Comparatively, 0.4% of Range Resources 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.
Continental Resources beats Range Resources on 14 of the 16 factors compared between the two stocks.
Continental Resources Company Profile
Continental Resources, Inc. explores for, develops, and produces crude oil and natural gas properties primarily in the north, south, and east regions of the United States. The company sells its crude oil and natural gas production to energy marketing companies, crude oil refining companies, and natural gas gathering and processing companies. As of December 31, 2018, its proved reserves were 1,522 million barrels of crude oil equivalent (MMBoe) with estimated proved developed reserves of 675 MMBoe. Continental Resources, Inc. was founded in 1967 and is based in Oklahoma City, Oklahoma.
Range Resources Company Profile
Range Resources Corporation operates as an independent natural gas, natural gas liquids (NGLs), and oil company. It engages in the exploration, development, and acquisition of natural gas and oil properties. It holds interests in developed and undeveloped natural gas and oil leases in the Appalachian and North Louisiana regions of the United States. As of December 31, 2018, the company owned and operated 4,900 net producing wells and approximately 878,000 net acres under lease in the Appalachian region; and 415 net producing wells and approximately 118,000 net acres under lease in the North Louisiana region. It markets and sells natural gas to utilities, marketing and midstream companies, and industrial users; petrochemical end users, NGL distributors, and natural gas processors; and oil and condensate to crude oil processors, transporters, and refining and marketing companies. The company was formerly known as Lomak Petroleum, Inc. and changed its name to Range Resources Corporation in 1998. Range Resources Corporation was founded in 1976 and is headquartered in Fort Worth, Texas.
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