Critical Contrast: REX American Resources (REX) versus Its Rivals

REX American Resources (NYSE:REX) is one of 1,051 public companies in the “Oil, Gas & Consumable Fuels” industry, but how does it compare to its competitors? We will compare REX American Resources to similar companies based on the strength of its institutional ownership, earnings, dividends, risk, valuation, profitability and analyst recommendations.

Risk and Volatility

REX American Resources has a beta of 0.6, meaning that its stock price is 40% less volatile than the S&P 500. Comparatively, REX American Resources’ competitors have a beta of -3.76, meaning that their average stock price is 476% less volatile than the S&P 500.

Insider and Institutional Ownership

88.1% of REX American Resources shares are held by institutional investors. Comparatively, 30.7% of shares of all “Oil, Gas & Consumable Fuels” companies are held by institutional investors. 13.2% of REX American Resources shares are held by company insiders. Comparatively, 15.5% of shares of all “Oil, Gas & Consumable Fuels” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings for REX American Resources and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
REX American Resources	0	0	1	0	3.00
REX American Resources Competitors	5989	27024	40898	2428	2.52

As a group, “Oil, Gas & Consumable Fuels” companies have a potential upside of 28.10%. Given REX American Resources’ competitors higher possible upside, analysts plainly believe REX American Resources has less favorable growth aspects than its competitors.

Profitability

This table compares REX American Resources and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
REX American Resources	18.31%	16.90%	15.01%
REX American Resources Competitors	-455.74%	19.71%	6.77%

Valuation & Earnings

This table compares REX American Resources and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
REX American Resources	$658.58 million	$82.95 million	10.92
REX American Resources Competitors	$14.85 billion	$5.51 billion	-1.07

REX American Resources’ competitors have higher revenue and earnings than REX American Resources. REX American Resources is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Summary

REX American Resources beats its competitors on 7 of the 13 factors compared.

About REX American Resources

REX American Resources Corporation is a holding company focused on the production and sale of fuel-grade ethanol and related products. Through its ownership interests in ethanol plants, the company processes corn into ethanol, distillers grains used in animal feed, and corn oil. The company’s production operations are based in the U.S. Midwest, where corn is a key feedstock. Its products serve fuel and agricultural markets, with ethanol marketed for use in gasoline and distillers grains supplied to livestock producers.