Financial Contrast: Eclipse Resources Corporation (ECR) and RSP Permian (RSPP)
Eclipse Resources Corporation (NYSE: ECR) and RSP Permian (NYSE:RSPP) are both oils/energy companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, risk, dividends, valuation, earnings, institutional ownership and profitability.
Risk & Volatility
Eclipse Resources Corporation has a beta of 3.03, meaning that its share price is 203% more volatile than the S&P 500. Comparatively, RSP Permian has a beta of 2.15, meaning that its share price is 115% more volatile than the S&P 500.
Earnings and Valuation
This table compares Eclipse Resources Corporation and RSP Permian’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Eclipse Resources Corporation||$326.42 million||1.71||$138.82 million||($0.19)||-11.21|
|RSP Permian||$569.59 million||8.18||$412.26 million||$0.48||61.19|
RSP Permian has higher revenue and earnings than Eclipse Resources Corporation. Eclipse Resources Corporation is trading at a lower price-to-earnings ratio than RSP Permian, indicating that it is currently the more affordable of the two stocks.
This table compares Eclipse Resources Corporation and RSP Permian’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Eclipse Resources Corporation||-15.86%||-5.22%||-2.53%|
Institutional and Insider Ownership
93.7% of Eclipse Resources Corporation shares are owned by institutional investors. Comparatively, 86.6% of RSP Permian shares are owned by institutional investors. 1.1% of Eclipse Resources Corporation shares are owned by insiders. Comparatively, 15.0% of RSP Permian shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
This is a summary of recent ratings for Eclipse Resources Corporation and RSP Permian, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Eclipse Resources Corporation||1||4||5||0||2.40|
Eclipse Resources Corporation currently has a consensus price target of $3.46, indicating a potential upside of 62.49%. RSP Permian has a consensus price target of $47.56, indicating a potential upside of 61.93%. Given Eclipse Resources Corporation’s higher possible upside, analysts clearly believe Eclipse Resources Corporation is more favorable than RSP Permian.
RSP Permian beats Eclipse Resources Corporation on 11 of the 14 factors compared between the two stocks.
About Eclipse Resources Corporation
Eclipse Resources Corporation is an independent exploration and production company. The Company is engaged in the acquisition and development of oil and natural gas properties in the Appalachian Basin. The Company is the operator of the Utica Core Area and its Marcellus Project Area. The Ordovician-aged Utica Shale is an unconventional reservoir consisting of organic-rich black shale, with production occurring at vertical depths between 6,000 and 10,000 feet. The Marcellus Shale consists of organic-rich black shale, with production occurring at vertical depths between 5,000 and 8,000 feet. As of December 31, 2016, the Company had commenced drilling 202 gross wells within the Utica Core Area and three gross wells within its Marcellus Area. As of December 31, 2016, it had approximately 92,000 net acres in the Utica Shale in Eastern Ohio within the Utica Core Area. As of December 31, 2016, the Company had assembled an acreage position approximating 199,000 net acres in Eastern Ohio.
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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