Head-To-Head Comparison: Kosmos Energy (NYSE:KOS) & RSP Permian (RSPP)
Kosmos Energy (NYSE: KOS) and RSP Permian (NYSE:RSPP) are both mid-cap oils/energy companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, institutional ownership, valuation, profitabiliy, earnings and dividends.
This is a summary of current recommendations for Kosmos Energy and RSP Permian, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Kosmos Energy currently has a consensus target price of $8.60, suggesting a potential upside of 31.30%. RSP Permian has a consensus target price of $47.36, suggesting a potential upside of 52.25%. Given RSP Permian’s stronger consensus rating and higher probable upside, analysts plainly believe RSP Permian is more favorable than Kosmos Energy.
Risk and Volatility
Kosmos Energy has a beta of 1.57, indicating that its share price is 57% more volatile than the S&P 500. Comparatively, RSP Permian has a beta of 2.13, indicating that its share price is 113% more volatile than the S&P 500.
This table compares Kosmos Energy and RSP Permian’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional and Insider Ownership
77.5% of RSP Permian shares are held by institutional investors. 3.8% of Kosmos Energy shares are held by insiders. Comparatively, 15.0% of RSP Permian shares are held by 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.
Earnings & Valuation
This table compares Kosmos Energy and RSP Permian’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Kosmos Energy||$400.39 million||6.34||-$111.27 million||($0.65)||-10.08|
|RSP Permian||$467.97 million||10.54||$320.42 million||$0.18||172.84|
RSP Permian has higher revenue and earnings than Kosmos Energy. Kosmos Energy is trading at a lower price-to-earnings ratio than RSP Permian, indicating that it is currently the more affordable of the two stocks.
RSP Permian beats Kosmos Energy on 13 of the 13 factors compared between the two stocks.
About Kosmos Energy
Kosmos Energy Ltd. (Kosmos) is an independent oil and gas exploration and production company. The Company is focused on the emerging areas along the Atlantic Margins. Its assets include existing production and development projects offshore Ghana, discoveries and further exploration potential offshore Mauritania and Senegal, as well as exploration licenses with hydrocarbon potential offshore Sao Tome and Principe, Suriname, Morocco and Western Sahara. The Company has operations in Africa and South America. The West Cape Three Points (WCTP) Block and Deepwater Tano (DT) Block are located within the Tano Basin, offshore Ghana. The Tano Basin represents the eastern extension of the Deep Ivorian Basin, which resulted from the development of an extensional sedimentary basin caused by tensional forces associated with opening of the Atlantic Ocean, as South America separated from Africa in the Mid-Cretaceous period.
About RSP Permian
RSP Permian, Inc. is an independent oil and natural gas company. The Company is engaged in the acquisition, exploration, development and production of unconventional oil and associated liquids-rich natural gas reserves in the Permian Basin of West Texas. The Company’s properties are located on contiguous acreage blocks in the Midland Basin, and the Delaware Basin, both sub-basins of the Permian Basin. The Midland Basin properties are primarily in the adjacent counties of Midland, Martin, Andrews, Ector, Glasscock and Dawson. The Delaware Basin properties are in Loving and Winkler counties. The Company has drilled Lower Spraberry horizontal well and a Middle Spraberry horizontal well in the Permian Basin. In addition, it has also drilled a Wolfcamp B horizontal well in the North Midland Basin.
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