Head-To-Head Analysis: Range Resources-Louisiana (MRD) & Parsley Energy (NYSE:PE)
Parsley Energy (NYSE: PE) and Range Resources-Louisiana (NASDAQ:MRD) are both oils/energy companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, valuation, profitabiliy, institutional ownership, risk, analyst recommendations and earnings.
This table compares Parsley Energy and Range Resources-Louisiana’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation & Earnings
This table compares Parsley Energy and Range Resources-Louisiana’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Parsley Energy||$596.14 million||11.68||$357.89 million||($0.19)||-148.63|
Parsley Energy has higher revenue and earnings than Range Resources-Louisiana. Parsley Energy is trading at a lower price-to-earnings ratio than Range Resources-Louisiana, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Parsley Energy has a beta of -0.11, meaning that its stock price is 111% less volatile than the S&P 500. Comparatively, Range Resources-Louisiana has a beta of 0.15, meaning that its stock price is 85% less volatile than the S&P 500.
This is a breakdown of current ratings for Parsley Energy and Range Resources-Louisiana, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Parsley Energy presently has a consensus target price of $40.20, indicating a potential upside of 42.35%. Range Resources-Louisiana has a consensus target price of $17.00, indicating a potential upside of 15.49%. Given Parsley Energy’s stronger consensus rating and higher probable upside, equities analysts clearly believe Parsley Energy is more favorable than Range Resources-Louisiana.
Institutional & Insider Ownership
91.6% of Parsley Energy shares are held by institutional investors. Comparatively, 85.3% of Range Resources-Louisiana shares are held by institutional investors. 15.5% of Parsley Energy shares are held by insiders. Comparatively, 51.1% of Range Resources-Louisiana shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Parsley Energy beats Range Resources-Louisiana on 8 of the 11 factors compared between the two stocks.
Parsley Energy Company Profile
Parsley Energy, Inc. is a holding company. The Company is an independent oil and natural gas company. The Company focuses on the acquisition, development and exploitation of unconventional oil and natural gas reserves in the Permian Basin. The Permian Basin is located in West Texas and Southeastern New Mexico and includes three primary sub-areas: the Midland Basin, the Central Basin Platform and the Delaware Basin. The Company’s properties are primarily located in the Midland and Delaware Basins, where it focuses on horizontal development drilling and target various stacked pay intervals in the Spraberry, Wolfcamp, Upper Pennsylvanian (Cline) and Atoka shales. As of December 31, 2016, it had an average working interest of 87% in 166 gross (146.7 net) horizontal wells, of which 151 gross (132.4 net) are in the Midland Basin. As of December 31, 2016, the Company operated seven horizontal rigs and three vertical drilling rigs.
Range Resources-Louisiana Company Profile
Range Resources-Louisiana, Inc., formerly Memorial Resource Development Corp, is an independent natural gas and oil company focused on the acquisition, exploration and development of natural gas and oil properties with substantially all of its activities in the Terryville Complex of North Louisiana. The Company’s segments include MRD and Memorial Production Partners LP (MEMP). The MRD Segment is focused on the acquisition, exploration, and development of natural gas and oil properties primarily in the Cotton Valley formation in North Louisiana. The MEMP Segment is engaged in the acquisition, exploitation, development and production of oil and natural gas properties, with assets consisting primarily of producing oil and natural gas properties that are located in Texas, Louisiana, Colorado, Wyoming and offshore Southern California. The MEMP segment reflects the combined operations of MEMP and its subsidiaries.
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