EP Energy Corporation (EPE) and Rex Energy Corporation (REXX) Critical Comparison
EP Energy Corporation (NYSE: EPE) and Rex Energy Corporation (NASDAQ:REXX) are both large-cap oils/energy companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, profitability, earnings, analyst recommendations and risk.
Valuation & Earnings
This table compares EP Energy Corporation and Rex Energy Corporation’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|EP Energy Corporation||$767.00 million||0.86||-$27.00 million||($1.06)||-2.43|
|Rex Energy Corporation||$139.02 million||0.13||-$176.71 million||($7.23)||-0.25|
EP Energy Corporation has higher revenue and earnings than Rex Energy Corporation. EP Energy Corporation is trading at a lower price-to-earnings ratio than Rex Energy Corporation, indicating that it is currently the more affordable of the two stocks.
This table compares EP Energy Corporation and Rex Energy Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|EP Energy Corporation||-25.44%||-8.19%||-0.97%|
|Rex Energy Corporation||-37.94%||-140.84%||-4.04%|
Volatility and Risk
EP Energy Corporation has a beta of 4.7, indicating that its share price is 370% more volatile than the S&P 500. Comparatively, Rex Energy Corporation has a beta of 1.83, indicating that its share price is 83% more volatile than the S&P 500.
This is a summary of recent recommendations for EP Energy Corporation and Rex Energy Corporation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|EP Energy Corporation||7||5||0||0||1.42|
|Rex Energy Corporation||0||3||0||0||2.00|
EP Energy Corporation presently has a consensus price target of $3.67, indicating a potential upside of 42.12%. Rex Energy Corporation has a consensus price target of $6.68, indicating a potential upside of 264.89%. Given Rex Energy Corporation’s stronger consensus rating and higher probable upside, analysts plainly believe Rex Energy Corporation is more favorable than EP Energy Corporation.
Insider and Institutional Ownership
70.2% of EP Energy Corporation shares are held by institutional investors. Comparatively, 14.5% of Rex Energy Corporation shares are held by institutional investors. 1.3% of EP Energy Corporation shares are held by insiders. Comparatively, 7.9% of Rex Energy Corporation shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
EP Energy Corporation beats Rex Energy Corporation on 9 of the 12 factors compared between the two stocks.
EP Energy Corporation Company Profile
EP Energy Corporation (EP Energy) is an independent exploration and production company. The Company is engaged in the acquisition and development of unconventional onshore oil and natural gas properties in the United States. The Company operates through a base of producing assets. It is involved in the development of its drilling inventory located in three areas: the Eagle Ford Shale (South Texas), the Wolfcamp Shale (Permian Basin in West Texas) and the Altamont Field in the Uinta Basin (Northeastern Utah). As of December 31, 2016, in its operating areas, the Company had identified 5,156 drilling locations (including 639 drilling locations to which it has attributed proved undeveloped reserves). As of December 31, 2016, the Company had proved reserves of 432.4 million barrels of oil equivalent (MMBoe) and an average net daily production of 87,641 barrel of oil equivalent per day (Boe/d).
Rex Energy Corporation Company Profile
Rex Energy Corporation is an independent oil, natural gas liquid (NGL) and natural gas company. The Company has operations in the Appalachian Basin and Illinois Basin. In the Appalachian Basin, the Company is focused on its Marcellus Shale, Utica Shale and Upper Devonian (Burkett) Shale drilling and exploration activities. In the Illinois Basin, the Company is focused on its developmental oil drilling on its properties. The Company owns an interest in approximately 1,820 oil and natural gas wells. The Company produces an average of over 195.8 net millions of cubic feet equivalent (MMcfe) per day, composed of approximately 62.4% natural gas, over 9.5% oil and approximately 28.1% NGLs. In the Illinois Basin, the Company produces an average of approximately 1,998 barrels of oil per day (bopd). Including both developed and undeveloped acreage, the Company controls approximately 99,200 gross (over 79,700 net) acres in Illinois, Indiana and Kentucky.
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