Critical Contrast: RSP Permian (RSPP) vs. Antero Resources Corporation (AR)
RSP Permian (NYSE: RSPP) and Antero Resources Corporation (NYSE:AR) are both mid-cap oils/energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, profitability, institutional ownership, analyst recommendations, risk, earnings and dividends.
This table compares RSP Permian and Antero Resources Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Antero Resources Corporation||0.48%||1.44%||0.78%|
Earnings and Valuation
This table compares RSP Permian and Antero Resources Corporation’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|RSP Permian||$569.59 million||8.84||$412.26 million||$0.48||66.15|
|Antero Resources Corporation||$2.75 billion||2.18||$1.36 billion||$0.05||379.20|
Antero Resources Corporation has higher revenue and earnings than RSP Permian. RSP Permian is trading at a lower price-to-earnings ratio than Antero Resources Corporation, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
RSP Permian has a beta of 2.17, suggesting that its stock price is 117% more volatile than the S&P 500. Comparatively, Antero Resources Corporation has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500.
Institutional and Insider Ownership
86.6% of RSP Permian shares are held by institutional investors. Comparatively, 93.7% of Antero Resources Corporation shares are held by institutional investors. 15.0% of RSP Permian shares are held by company insiders. Comparatively, 9.2% of Antero Resources Corporation shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
This is a summary of recent ratings and recommmendations for RSP Permian and Antero Resources Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Antero Resources Corporation||0||9||14||1||2.67|
RSP Permian currently has a consensus price target of $46.68, indicating a potential upside of 47.03%. Antero Resources Corporation has a consensus price target of $28.67, indicating a potential upside of 51.20%. Given Antero Resources Corporation’s higher probable upside, analysts clearly believe Antero Resources Corporation is more favorable than RSP Permian.
RSP Permian beats Antero Resources Corporation on 10 of the 14 factors compared between the two stocks.
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.
About Antero Resources Corporation
Antero Resources Corporation is an oil and natural gas company. The Company is engaged in the exploration, development and acquisition of natural gas, natural gas liquids (NGLs) and oil properties located in the Appalachian Basin. The Company’s segments include the exploration, development and production of natural gas, NGLs and oil; gathering and processing; water handling and treatment, and marketing of excess firm transportation capacity. The Company’s subsidiary, Antero Midstream Partners LP (Antero Midstream) is a master limited partnership, which owns, operates and develops midstream energy infrastructure primarily to service its production and completion activity. Its exploration and development activities are supported by the natural gas gathering and compression assets of its subsidiary, Antero Midstream, as well as by third party gathering and compression arrangements. It also has access to additional low-pressure and high-pressure pipelines.
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