RSP Permian (NYSE: RSPP) and Laredo Petroleum (NYSE:LPI) are both mid-cap 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.
This is a summary of current ratings and price targets for RSP Permian and Laredo Petroleum, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Insider & Institutional Ownership
86.2% of RSP Permian shares are owned by institutional investors. 15.0% of RSP Permian shares are owned by insiders. Comparatively, 1.4% of Laredo Petroleum 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 RSP Permian and Laredo Petroleum’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares RSP Permian and Laredo Petroleum’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|RSP Permian||$353.86 million||18.86||-$24.85 million||$0.60||70.15|
|Laredo Petroleum||$597.38 million||4.49||-$260.73 million||$0.50||22.14|
RSP Permian has higher earnings, but lower revenue than Laredo Petroleum. Laredo Petroleum is trading at a lower price-to-earnings ratio than RSP Permian, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
RSP Permian has a beta of 2.15, indicating that its share price is 115% more volatile than the S&P 500. Comparatively, Laredo Petroleum has a beta of 1.32, indicating that its share price is 32% more volatile than the S&P 500.
RSP Permian beats Laredo Petroleum on 10 of the 15 factors compared between the two stocks.
RSP Permian Company Profile
RSP Permian, Inc. is an independent oil and natural gas company. The Company is engaged in the acquisition, exploration, development and production of unconventional oil and associated liquids-rich natural gas reserves in the Permian Basin of West Texas. The Company’s properties are located on contiguous acreage blocks in the Midland Basin, and the Delaware Basin, both sub-basins of the Permian Basin. The Midland Basin properties are primarily in the adjacent counties of Midland, Martin, Andrews, Ector, Glasscock and Dawson. The Delaware Basin properties are in Loving and Winkler counties. The Company has drilled Lower Spraberry horizontal well and a Middle Spraberry horizontal well in the Permian Basin. In addition, it has also drilled a Wolfcamp B horizontal well in the North Midland Basin.
Laredo Petroleum Company Profile
Laredo Petroleum, Inc. (Laredo) is an independent energy company. The Company is focused on the acquisition, exploration and development of oil and natural gas properties, and the transportation of oil and natural gas from such properties primarily in the Permian Basin in West Texas. It operates through two segments: Exploration and production of oil and natural gas properties, and Midstream and marketing. The exploration and production of oil and natural gas properties are conducted by it through the exploration and development of its acreage in the Permian Basin. As of December 31, 2016, it had assembled 127,847 net acres in the Permian Basin and had total proved reserves, presented on a three-stream basis, of 167,100 thousand of barrels of oil equivalent (MBOE). The Midstream and marketing segment’s operations are conducted by its subsidiary, Laredo Midstream Services, LLC, which buys, sells, gathers and transports oil, natural gas and water primarily for the account of Laredo.
What are top analysts saying about RSP Permian? - Enter your email address in the form below to receive our free daily email newsletter that contains the latest headlines and analysts' recommendations for for RSP Permian and related companies.