REX American Resources (NYSE: REX) and 8Point3 Energy Partners (NASDAQ:CAFD) are both small-cap oils/energy companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, earnings, dividends and risk.

Institutional and Insider Ownership

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91.4% of REX American Resources shares are owned by institutional investors. Comparatively, 17.5% of 8Point3 Energy Partners shares are owned by institutional investors. 12.2% of REX American Resources shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for REX American Resources and 8Point3 Energy Partners, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
REX American Resources 0 0 0 0 N/A
8Point3 Energy Partners 2 12 0 0 1.86

8Point3 Energy Partners has a consensus target price of $13.35, indicating a potential upside of 12.37%. Given 8Point3 Energy Partners’ higher possible upside, analysts plainly believe 8Point3 Energy Partners is more favorable than REX American Resources.

Volatility & Risk

REX American Resources has a beta of 1.44, indicating that its stock price is 44% more volatile than the S&P 500. Comparatively, 8Point3 Energy Partners has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500.

Profitability

This table compares REX American Resources and 8Point3 Energy Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
REX American Resources 7.11% 8.29% 7.15%
8Point3 Energy Partners 16.28% 2.42% 1.25%

Dividends

8Point3 Energy Partners pays an annual dividend of $1.12 per share and has a dividend yield of 9.4%. REX American Resources does not pay a dividend.

Valuation & Earnings

This table compares REX American Resources and 8Point3 Energy Partners’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
REX American Resources $453.80 million 1.16 $32.33 million $5.02 15.97
8Point3 Energy Partners $70.08 million 13.41 $11.40 million N/A N/A

REX American Resources has higher revenue and earnings than 8Point3 Energy Partners.

Summary

REX American Resources beats 8Point3 Energy Partners on 7 of the 11 factors compared between the two stocks.

REX American Resources Company Profile

Rex American Resources Corporation is a holding company. As of January 31, 2017, the Company had invested in three ethanol production entities. It operates through alternative energy segment. As of January 31, 2017, the Company’s ethanol investments include One Earth Energy, LLC (One Earth), NuGen Energy, LLC (NuGen) and Big River Resources, LLC (Big River). One Earth has its ethanol production facility in Gibson City, Illinois. NuGen operates an ethanol producing facility in Marion, South Dakota. Big River is a holding company for various entities, including Big River Resources West Burlington, LLC, which operates an ethanol plant in West Burlington, Iowa. Big River has interest in Big River United Energy, LLC, which operates an ethanol production facility located in Dyersville, Iowa. Big River has interest in an ethanol production facility, which is located in Boyceville, Wisconsin.

8Point3 Energy Partners Company Profile

8point3 Energy Partners LP owns, operates and acquires solar energy generation projects. As of November 30, 2016, Company’s portfolio comprised interests in 642 Megawatt (MW) of solar energy projects. The Company is developing projects under utility, commercial and industrial (C&I) and residential categories. As of November 30, 2016, the Company owned interests in nine utility-scale solar energy projects; four C&I solar energy projects, and a portfolio of residential Distributed generation (DG) Solar assets. The Company’s utility project portfolio comprises projects, which include Maryland Solar, Solar Gen 2, Lost Hills Blackwell, North Star, RPU, Quinto, Hooper and Kingbird. The Company’s C&I projects comprise UC Davis, Macy’s California, Macy’s Maryland and Kern. The Company’s residential portfolio targets homeowners in the United States.

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