Rice Energy (NYSE: RICE) and EXCO Resources NL (NYSE:XCO) are both oils/energy companies, but which is the better business? We will compare the two companies based on the strength of their valuation, risk, earnings, dividends, institutional ownership, profitability and analyst recommendations.
Risk & Volatility
Rice Energy has a beta of 1.57, indicating that its share price is 57% more volatile than the S&P 500. Comparatively, EXCO Resources NL has a beta of 0.62, indicating that its share price is 38% less volatile than the S&P 500.
Valuation and Earnings
This table compares Rice Energy and EXCO Resources NL’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Rice Energy||$778.91 million||8.16||-$269.75 million||($1.24)||-22.48|
|EXCO Resources NL||$271.00 million||0.11||-$225.25 million||$7.42||0.19|
EXCO Resources NL has higher revenue, but lower earnings than Rice Energy. Rice Energy is trading at a lower price-to-earnings ratio than EXCO Resources NL, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and price targets for Rice Energy and EXCO Resources NL, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|EXCO Resources NL||0||0||0||0||N/A|
Rice Energy presently has a consensus price target of $27.71, indicating a potential downside of 0.61%. Given Rice Energy’s higher probable upside, analysts clearly believe Rice Energy is more favorable than EXCO Resources NL.
Insider & Institutional Ownership
87.2% of Rice Energy shares are owned by institutional investors. Comparatively, 56.7% of EXCO Resources NL shares are owned by institutional investors. 1.7% of Rice Energy shares are owned by insiders. Comparatively, 2.0% of EXCO Resources NL shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
This table compares Rice Energy and EXCO Resources NL’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|EXCO Resources NL||47.81%||N/A||-2.58%|
Rice Energy beats EXCO Resources NL on 8 of the 12 factors compared between the two stocks.
Rice Energy Company Profile
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.
EXCO Resources NL Company Profile
EXCO Resources, Inc. (EXCO) is an oil and natural gas company. The Company is engaged in the exploration, exploitation, acquisition, development and production of onshore United States oil and natural gas properties with a focus on shale resource plays. The Company’s principal operations are conducted in certain United States oil and natural gas areas, including Texas, Louisiana and the Appalachia region. The Company holds acreage positions in approximately three shale plays in the United States, including East Texas and North Louisiana, South Texas and Appalachia. In East Texas and North Louisiana, the Company holds approximately 83,800 net acres in the Haynesville and Bossier shales. In South Texas, it holds approximately 65,800 net acres in the Eagle Ford shale. In Appalachia, the Company holds approximately 137,400 net acres prospective in the Marcellus shale.
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