Range Resources (NYSE:RRC) vs. PrimeEnergy (NASDAQ:PNRG) Financial Analysis

Range Resources (NYSE:RRC) and PrimeEnergy (NASDAQ:PNRG) are both energy companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, profitability, dividends, analyst recommendations, valuation, risk and institutional ownership.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Range Resources and PrimeEnergy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Range Resources	1	14	5	1	2.29
PrimeEnergy	0	1	0	0	2.00

Range Resources currently has a consensus target price of $41.95, indicating a potential upside of 24.64%. Given Range Resources’ stronger consensus rating and higher possible upside, analysts plainly believe Range Resources is more favorable than PrimeEnergy.

Profitability

This table compares Range Resources and PrimeEnergy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Range Resources	19.64%	15.99%	8.93%
PrimeEnergy	12.69%	12.19%	7.53%

Risk and Volatility

Range Resources has a beta of 0.51, suggesting that its share price is 49% less volatile than the S&P 500. Comparatively, PrimeEnergy has a beta of 0.01, suggesting that its share price is 99% less volatile than the S&P 500.

Earnings & Valuation

This table compares Range Resources and PrimeEnergy”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Range Resources	$2.42 billion	3.30	$266.34 million	$2.38	14.14
PrimeEnergy	$237.80 million	1.25	$55.40 million	$10.45	17.44

Range Resources has higher revenue and earnings than PrimeEnergy. Range Resources is trading at a lower price-to-earnings ratio than PrimeEnergy, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

98.9% of Range Resources shares are owned by institutional investors. 1.0% of Range Resources shares are owned by company insiders. Comparatively, 62.8% of PrimeEnergy shares are owned by company 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.

Summary

Range Resources beats PrimeEnergy on 12 of the 15 factors compared between the two stocks.

About Range Resources

Range Resources Corporation operates as an independent natural gas, natural gas liquids (NGLs), crude oil, and condensate company in the United States. The company engages in the exploration, development, and acquisition of natural gas and crude oil properties located in the Appalachian region. It sells natural gas to utilities, marketing and midstream companies, and industrial users; NGLs to petrochemical end users, marketers/traders, 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 August 1998. Range Resources Corporation was founded in 1976 and is headquartered in Fort Worth, Texas.

About PrimeEnergy

PrimeEnergy Resources Corporation, through its subsidiaries, engages in acquisition, development, and production of oil and natural gas properties in the United States. The company owns leasehold, mineral, and royalty interests in producing and non-producing oil and gas properties; and operates approximately 534 active wells and owns non-operating interests and royalties in 952 additional wells. It also acquires producing oil and gas properties through joint ventures with industry partners; and provides contract services to third parties, including well-servicing support, site-preparation, and construction services for oil and gas drilling and reworking operations. The company was formerly known as PrimeEnergy Corporation and changed its name to PrimeEnergy Resources Corporation in December 2018. PrimeEnergy Resources Corporation was incorporated in 1973 and is headquartered in Houston, Texas.