Rex Energy Corporation (NASDAQ: REXX) and EV Energy Partners, L.P. (NASDAQ:EVEP) are both small-cap oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, analyst recommendations, dividends, valuation, profitability and institutional ownership.
Valuation and Earnings
This table compares Rex Energy Corporation and EV Energy Partners, L.P.’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Rex Energy Corporation||$181.60 million||0.13||$58.24 million||($7.23)||-0.34|
|EV Energy Partners, L.P.||$207.59 million||N/A||$86.90 million||($5.20)||-0.10|
EV Energy Partners, L.P. has higher revenue and earnings than Rex Energy Corporation. Rex Energy Corporation is trading at a lower price-to-earnings ratio than EV Energy Partners, L.P., indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Rex Energy Corporation has a beta of 1.84, meaning that its stock price is 84% more volatile than the S&P 500. Comparatively, EV Energy Partners, L.P. has a beta of 1.74, meaning that its stock price is 74% more volatile than the S&P 500.
This is a breakdown of current recommendations for Rex Energy Corporation and EV Energy Partners, L.P., as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Rex Energy Corporation||0||3||0||0||2.00|
|EV Energy Partners, L.P.||1||1||0||0||1.50|
Rex Energy Corporation presently has a consensus price target of $6.68, indicating a potential upside of 172.55%. EV Energy Partners, L.P. has a consensus price target of $1.00, indicating a potential upside of 98.61%. Given Rex Energy Corporation’s stronger consensus rating and higher probable upside, analysts plainly believe Rex Energy Corporation is more favorable than EV Energy Partners, L.P..
This table compares Rex Energy Corporation and EV Energy Partners, L.P.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Rex Energy Corporation||-37.94%||-140.84%||-4.04%|
|EV Energy Partners, L.P.||-120.31%||-7.43%||-3.56%|
Insider & Institutional Ownership
14.7% of Rex Energy Corporation shares are owned by institutional investors. Comparatively, 8.6% of EV Energy Partners, L.P. shares are owned by institutional investors. 7.9% of Rex Energy Corporation shares are owned by insiders. Comparatively, 10.2% of EV Energy Partners, L.P. shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
EV Energy Partners, L.P. beats Rex Energy Corporation on 6 of the 11 factors compared between the two stocks.
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.
EV Energy Partners, L.P. Company Profile
EV Energy Partners, L.P. is engaged in the acquisition, development and production of oil and natural gas properties and all of its operations are located in the United States. The Company’s oil and natural gas properties are located in the Appalachian Basin, which includes the Utica Shale; the San Juan Basin; Michigan; Central Texas, which includes the Austin Chalk area; the Mid-Continent areas in Oklahoma, Texas, Arkansas, Kansas and Louisiana; the Monroe Field in Northern Louisiana, and the Permian Basin. Its activities are concentrated in the Ohio and West Virginia areas of the Appalachian Basin. Its properties are located in Rio Arriba County, New Mexico and La Plata County in Colorado. It owns Eagle Ford oil and natural gas properties in Karnes County, including Eagle Ford and Austin Chalk reserves. It holds interest in approximately 9,150 acres in Karnes County. Its properties are located in the Antrim Shale reservoir in Otsego and Montmorency counties in northern Michigan.
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