Range Resources (NYSE:RRC – Get Free Report) and Inpex (OTCMKTS:IPXHY – Get Free Report) are both large-cap energy companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.
Profitability
This table compares Range Resources and Inpex’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Range Resources | 25.25% | 19.15% | 11.79% |
| Inpex | 21.93% | 8.53% | 5.51% |
Dividends
Range Resources pays an annual dividend of $0.40 per share and has a dividend yield of 0.7%. Inpex pays an annual dividend of $0.42 per share and has a dividend yield of 1.7%. Range Resources pays out 10.6% of its earnings in the form of a dividend. Inpex pays out 17.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Range Resources has raised its dividend for 1 consecutive years.
Analyst Recommendations
This is a summary of current ratings and recommmendations for Range Resources and Inpex, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Range Resources | 1 | 18 | 3 | 1 | 2.17 |
| Inpex | 0 | 3 | 0 | 0 | 2.00 |
Range Resources presently has a consensus target price of $46.22, suggesting a potential downside of 15.48%. Given Range Resources’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Range Resources is more favorable than Inpex.
Valuation and Earnings
This table compares Range Resources and Inpex”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Range Resources | $3.40 billion | 3.76 | $658.02 million | $3.77 | 14.51 |
| Inpex | $13.45 billion | 2.23 | $2.52 billion | $2.38 | 10.62 |
Inpex has higher revenue and earnings than Range Resources. Inpex is trading at a lower price-to-earnings ratio than Range Resources, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Range Resources has a beta of 0.71, suggesting that its stock price is 29% less volatile than the S&P 500. Comparatively, Inpex has a beta of 0.2, suggesting that its stock price is 80% less volatile than the S&P 500.
Institutional and Insider Ownership
98.9% of Range Resources shares are owned by institutional investors. Comparatively, 0.0% of Inpex shares are owned by institutional investors. 1.1% of Range Resources shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Summary
Range Resources beats Inpex on 15 of the 18 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 Inpex
Inpex Corporation engages in the research, exploration, development, production, and sale of oil, natural gas, and other mineral resources in Japan, rest of Asia and Oceania, Europe and NIS countries, the Middle East and Africa, and the Americas. The company is involved in the investment and lending to the companies engaged in mineral resources business, etc. It also transports natural gas, as well as operates, manages, and maintains gas pipelines. In addition, the company engages in storage of carbon capture related business. Further, it is involved in hydrogen and ammonia, renewable energy, forest conservation, and carbon recycling related businesses. Inpex Corporation was founded in 1966 and is headquartered in Tokyo, Japan.
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