Clayton Williams Energy (CWEI) vs. Rice Energy (RICE) Critical Comparison
Clayton Williams Energy (NYSE: CWEI) and Rice Energy (NYSE:RICE) are both energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, profitability, analyst recommendations and valuation.
This table compares Clayton Williams Energy and Rice Energy’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Clayton Williams Energy||-16.83%||-63.50%||-7.44%|
Volatility & Risk
Clayton Williams Energy has a beta of 2.34, suggesting that its share price is 134% more volatile than the S&P 500. Comparatively, Rice Energy has a beta of 1.58, suggesting that its share price is 58% more volatile than the S&P 500.
This is a breakdown of current recommendations for Clayton Williams Energy and Rice Energy, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Clayton Williams Energy||0||2||0||0||2.00|
Clayton Williams Energy currently has a consensus target price of $90.00, indicating a potential downside of 31.77%. Rice Energy has a consensus target price of $28.26, indicating a potential upside of 5.57%. Given Rice Energy’s stronger consensus rating and higher probable upside, analysts plainly believe Rice Energy is more favorable than Clayton Williams Energy.
Insider and Institutional Ownership
67.8% of Clayton Williams Energy shares are held by institutional investors. Comparatively, 96.1% of Rice Energy shares are held by institutional investors. 36.4% of Clayton Williams Energy shares are held by insiders. Comparatively, 1.7% of Rice Energy shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares Clayton Williams Energy and Rice Energy’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Clayton Williams Energy||N/A||N/A||N/A||($23.46)||-5.62|
|Rice Energy||$1.28 billion||4.47||$800.57 million||($0.34)||-78.73|
Rice Energy has higher revenue and earnings than Clayton Williams Energy. Rice Energy is trading at a lower price-to-earnings ratio than Clayton Williams Energy, indicating that it is currently the more affordable of the two stocks.
Rice Energy beats Clayton Williams Energy on 9 of the 11 factors compared between the two stocks.
About Clayton Williams Energy
Clayton Williams Energy, Inc. is an independent oil and gas company engaged in the exploration for and production of oil and natural gas primarily in its core area in Southern Reeves County, Texas. The Company operates through two segments: oil and gas exploration and production, and contract drilling services. The Company focuses on developmental drilling in prolific oil shale provinces. The Company has holdings in the oil shale plays in the United States, the Wolfcamp Shale in the Southern Delaware Basin of West Texas. Its exploration program consists of generating exploratory prospects, leasing the acreage related to these prospects, drilling exploratory wells on these prospects to determine if recoverable oil and gas reserves exist, drilling developmental wells on these prospects and producing and selling any resulting oil and gas production. The Permian Basin is a sedimentary basin in West Texas and Southeastern New Mexico.
About Rice Energy
Rice Energy Inc. (Rice Energy) is an independent natural gas and oil company. The Company is engaged in the acquisition, exploration and development of natural gas, oil and natural gas liquids (NGL) properties in the Appalachian Basin. The Company conducts its operations through two segments: Exploration and Production, and Midstream. The Exploration and Production segment is engaged in the acquisition, exploration and development of natural gas, oil and NGLs. The Exploration and Production segment operates in the cores of the Marcellus and Utica Shales. The Company controls approximately 231,000 net acres in the Marcellus and Ohio Utica Shale cores. It operates approximately 1,164 drilling locations. The Midstream segment is engaged in the gathering and compression of natural gas, oil and NGL production of, and in the provision of water services to support the well completion activities of, Rice Energy and third parties.
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