Analyzing Range Resources (RRC) and Its Competitors

Range Resources (NYSE:RRC) is one of 1,050 public companies in the “Oil, Gas & Consumable Fuels” industry, but how does it weigh in compared to its rivals? We will compare Range Resources to similar companies based on the strength of its earnings, analyst recommendations, valuation, risk, institutional ownership, profitability and dividends.

Valuation and Earnings

This table compares Range Resources and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Range Resources	$3.12 billion	$658.02 million	15.24
Range Resources Competitors	$272.45 billion	$5.51 billion	1.02

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

Dividends

Range Resources pays an annual dividend of $0.40 per share and has a dividend yield of 0.7%. Range Resources pays out 11.0% of its earnings in the form of a dividend. As a group, “Oil, Gas & Consumable Fuels” companies pay a dividend yield of 8.4% and pay out -118.5% of their earnings in the form of a dividend. Range Resources has increased its dividend for 1 consecutive years. Range Resources lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Range Resources and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Range Resources	1	18	3	1	2.17
Range Resources Competitors	5954	26911	40718	2392	2.52

Range Resources presently has a consensus target price of $45.78, suggesting a potential downside of 17.00%. As a group, “Oil, Gas & Consumable Fuels” companies have a potential upside of 16.60%. Given Range Resources’ rivals stronger consensus rating and higher possible upside, analysts plainly believe Range Resources has less favorable growth aspects than its rivals.

Insider & Institutional Ownership

98.9% of Range Resources shares are owned by institutional investors. Comparatively, 30.6% of shares of all “Oil, Gas & Consumable Fuels” companies are owned by institutional investors. 1.1% of Range Resources shares are owned by insiders. Comparatively, 15.5% of shares of all “Oil, Gas & Consumable Fuels” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Risk and Volatility

Range Resources has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500. Comparatively, Range Resources’ rivals have a beta of -4.05, indicating that their average stock price is 505% less volatile than the S&P 500.

Profitability

This table compares Range Resources and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Range Resources	25.04%	18.63%	11.23%
Range Resources Competitors	-474.33%	20.28%	6.19%

Summary

Range Resources rivals beat Range Resources on 9 of the 15 factors compared.

Range Resources Company Profile

Range Resources Corporation operates as an independent natural gas, natural gas liquids (NGLs), crude oil, and condensate company in the United States. The company engages in the exploration, development, and acquisition of natural gas and crude oil properties located in the Appalachian region. It sells natural gas to utilities, marketing and midstream companies, and industrial users; NGLs to petrochemical end users, marketers/traders, and natural gas processors; and oil and condensate to crude oil processors, transporters, and refining and marketing companies. The company was formerly known as Lomak Petroleum Inc. and changed its name to Range Resources Corporation in August 1998. Range Resources Corporation was founded in 1976 and is headquartered in Fort Worth, Texas.