Comparing REX American Resources (NYSE:REX) & Nordic American Tankers (NYSE:NAT)

Nordic American Tankers (NYSE:NAT) and REX American Resources (NYSE:REX) are both small-cap energy companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, institutional ownership, analyst recommendations, risk, valuation, dividends and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Nordic American Tankers	47.04%	20.58%	10.38%
REX American Resources	18.31%	16.90%	15.01%

Volatility and Risk

Nordic American Tankers has a beta of -0.54, meaning that its share price is 154% less volatile than the S&P 500. Comparatively, REX American Resources has a beta of 0.63, meaning that its share price is 37% less volatile than the S&P 500.

Valuation & Earnings

This table compares Nordic American Tankers and REX American Resources”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nordic American Tankers	$182.54 million	9.46	$12.27 million	$0.59	13.82
REX American Resources	$650.49 million	2.18	$82.95 million	$3.65	11.72

REX American Resources has higher revenue and earnings than Nordic American Tankers. REX American Resources is trading at a lower price-to-earnings ratio than Nordic American Tankers, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings for Nordic American Tankers and REX American Resources, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nordic American Tankers	1	2	2	0	2.20
REX American Resources	0	0	1	0	3.00

Nordic American Tankers presently has a consensus price target of $5.33, suggesting a potential downside of 34.60%. Given Nordic American Tankers’ higher possible upside, analysts clearly believe Nordic American Tankers is more favorable than REX American Resources.

Insider & Institutional Ownership

44.3% of Nordic American Tankers shares are owned by institutional investors. Comparatively, 88.1% of REX American Resources shares are owned by institutional investors. 2.9% of Nordic American Tankers shares are owned by company insiders. Comparatively, 13.2% of REX American Resources shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

REX American Resources beats Nordic American Tankers on 8 of the 14 factors compared between the two stocks.

About Nordic American Tankers

Nordic American Tankers Limited, a tanker company, acquires and charters double-hull tankers in Bermuda and internationally. It operates a fleet of 20 Suezmax crude oil tankers. The company was incorporated in 1995 and is headquartered in Hamilton, Bermuda.

About REX American Resources

REX American Resources Corporation, together with its subsidiaries, produces and sells ethanol in the United States. The company also offers corn, distillers grains, ethanol, distillers corn oil, gasoline, and natural gas. In addition, it provides dry distillers grains with solubles, which is used as a protein in animal feed. The company was formerly known as REX Stores Corporation and changed its name to REX American Resources Corporation in 2010. REX American Resources Corporation was founded in 1980 and is headquartered in Dayton, Ohio.