Ring Energy (NYSE: REI) and Noble Corporation (NYSE:NE) are both small-cap basic materials companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, dividends, valuation and earnings.

Insider & Institutional Ownership

95.6% of Noble Corporation shares are held by institutional investors. 1.6% of Noble Corporation shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Ring Energy and Noble Corporation’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Ring Energy $42.26 million 16.58 $21.77 million N/A N/A
Noble Corporation $1.40 billion 0.72 $639.70 million ($7.21) -0.57

Noble Corporation has higher revenue and earnings than Ring Energy.

Analyst Recommendations

This is a summary of recent ratings for Ring Energy and Noble Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ring Energy 0 0 6 0 3.00
Noble Corporation 6 17 4 0 1.93

Ring Energy presently has a consensus target price of $18.60, suggesting a potential upside of 43.74%. Noble Corporation has a consensus target price of $5.80, suggesting a potential upside of 40.32%. Given Ring Energy’s stronger consensus rating and higher possible upside, analysts plainly believe Ring Energy is more favorable than Noble Corporation.

Profitability

This table compares Ring Energy and Noble Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ring Energy N/A N/A N/A
Noble Corporation -122.04% -3.19% -1.83%

Summary

Ring Energy beats Noble Corporation on 7 of the 11 factors compared between the two stocks.

About Ring Energy

Ring Energy, Inc. acquires, explores for, develops, and produces oil and natural gas in Texas and Kansas, the United States. As of December 31, 2016, its proved reserves consisted of approximately 27.7 million barrel of oil equivalent. The company also owns interests in 32,663 net developed and undeveloped acres in Andrews and Gaines counties, and 20,490 net developed and undeveloped acres in Reeves and Culberson counties, Texas; and 14,549 net developed and undeveloped acres in Kansas. It primarily sells its oil and natural gas production to end users, marketers, and other purchasers. The company was formerly known as Transglobal Mining Corp. and changed its name to Ring Energy, Inc. in March 2008. Ring Energy, Inc. was founded in 2004 and is headquartered in Midland, Texas.

About Noble Corporation

Noble Corporation is an offshore drilling contractor for the oil and gas industry. The Company performs contract drilling services with its fleet of 79 mobile offshore drilling units and one floating production storage and offloading unit (NYSE:NE) located globally.

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