REX American Resources Corporation (NYSE: REX) and Green Plains (NASDAQ:GPRE) are both small-cap oils/energy companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, institutional ownership, profitabiliy, analyst recommendations, risk, valuation and dividends.

Earnings and Valuation

This table compares REX American Resources Corporation and Green Plains’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
REX American Resources Corporation $466.72 million 1.36 $71.98 million $5.17 18.72
Green Plains $3.55 billion 0.22 $207.12 million $0.17 112.35

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

Risk and Volatility

REX American Resources Corporation has a beta of 1.59, indicating that its stock price is 59% more volatile than the S&P 500. Comparatively, Green Plains has a beta of 1.42, indicating that its stock price is 42% more volatile than the S&P 500.

Profitability

This table compares REX American Resources Corporation and Green Plains’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
REX American Resources Corporation 7.29% 8.96% 7.70%
Green Plains 0.19% 0.68% 0.28%

Dividends

Green Plains pays an annual dividend of $0.48 per share and has a dividend yield of 2.5%. REX American Resources Corporation does not pay a dividend. Green Plains pays out 282.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Insider & Institutional Ownership

89.7% of REX American Resources Corporation shares are held by institutional investors. 14.7% of REX American Resources Corporation shares are held by insiders. Comparatively, 6.4% of Green Plains shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of current ratings and recommmendations for REX American Resources Corporation and Green Plains, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
REX American Resources Corporation 0 1 0 0 2.00
Green Plains 0 1 5 0 2.83

REX American Resources Corporation presently has a consensus target price of $94.50, suggesting a potential downside of 2.37%. Green Plains has a consensus target price of $27.00, suggesting a potential upside of 41.36%. Given Green Plains’ stronger consensus rating and higher probable upside, analysts plainly believe Green Plains is more favorable than REX American Resources Corporation.

Summary

REX American Resources Corporation beats Green Plains on 9 of the 16 factors compared between the two stocks.

About REX American Resources Corporation

Rex American Resources Corporation is a holding company. As of January 31, 2017, the Company had invested in three ethanol production entities. It operates through alternative energy segment. As of January 31, 2017, the Company’s ethanol investments include One Earth Energy, LLC (One Earth), NuGen Energy, LLC (NuGen) and Big River Resources, LLC (Big River). One Earth has its ethanol production facility in Gibson City, Illinois. NuGen operates an ethanol producing facility in Marion, South Dakota. Big River is a holding company for various entities, including Big River Resources West Burlington, LLC, which operates an ethanol plant in West Burlington, Iowa. Big River has interest in Big River United Energy, LLC, which operates an ethanol production facility located in Dyersville, Iowa. Big River has interest in an ethanol production facility, which is located in Boyceville, Wisconsin.

About Green Plains

Green Plains Inc. is an ethanol producer. The Company owns and operates assets throughout the ethanol value chain, including upstream, with grain handling and storage through its ethanol production facilities, and downstream, with marketing and distribution services. It operates through four segments: Ethanol Production, Agribusiness and Energy Services, Food and Food Ingredients, and Partnership. The ethanol production segment includes production of ethanol, distillers grains and corn oil. The agribusiness and energy services segment includes grain procurement. The food and food ingredients segment includes a cattle feedlot operation. The Company’s master limited partnership, Green Plains Partners LP (the partnership), provides fuel storage and transportation services by owning, operating, developing and acquiring ethanol and fuel storage tanks, terminals, transportation assets and other related assets and businesses.

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