Rex Energy (NASDAQ: REXX) and Carrizo Oil & Gas (NASDAQ:CRZO) are both small-cap oils/energy companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, dividends, earnings and risk.

Analyst Ratings

This is a summary of recent recommendations and price targets for Rex Energy and Carrizo Oil & Gas, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rex Energy 0 5 0 0 2.00
Carrizo Oil & Gas 1 9 10 0 2.45

Rex Energy currently has a consensus target price of $5.34, suggesting a potential upside of 242.44%. Carrizo Oil & Gas has a consensus target price of $27.69, suggesting a potential upside of 32.99%. Given Rex Energy’s higher probable upside, equities research analysts clearly believe Rex Energy is more favorable than Carrizo Oil & Gas.

Volatility & Risk

Rex Energy has a beta of 1.83, indicating that its share price is 83% more volatile than the S&P 500. Comparatively, Carrizo Oil & Gas has a beta of 2.18, indicating that its share price is 118% more volatile than the S&P 500.

Earnings & Valuation

This table compares Rex Energy and Carrizo Oil & Gas’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Rex Energy $139.02 million 0.11 -$176.71 million ($12.49) -0.12
Carrizo Oil & Gas $443.59 million 3.82 -$675.47 million $1.52 13.70

Rex Energy has higher earnings, but lower revenue than Carrizo Oil & Gas. Rex Energy is trading at a lower price-to-earnings ratio than Carrizo Oil & Gas, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

12.8% of Rex Energy shares are held by institutional investors. 7.9% of Rex Energy shares are held by company insiders. Comparatively, 6.0% of Carrizo Oil & Gas shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Rex Energy and Carrizo Oil & Gas’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rex Energy -61.80% -140.84% -3.76%
Carrizo Oil & Gas 16.08% 58.37% 4.45%

Summary

Carrizo Oil & Gas beats Rex Energy on 9 of the 13 factors compared between the two stocks.

About Rex Energy

Rex Energy Corporation is an independent oil, natural gas liquid (NGL) and natural gas company. The Company has operations in the Appalachian Basin and Illinois Basin. In the Appalachian Basin, the Company is focused on its Marcellus Shale, Utica Shale and Upper Devonian (Burkett) Shale drilling and exploration activities. In the Illinois Basin, the Company is focused on its developmental oil drilling on its properties. The Company owns an interest in approximately 1,820 oil and natural gas wells. The Company produces an average of over 195.8 net millions of cubic feet equivalent (MMcfe) per day, composed of approximately 62.4% natural gas, over 9.5% oil and approximately 28.1% NGLs. In the Illinois Basin, the Company produces an average of approximately 1,998 barrels of oil per day (bopd). Including both developed and undeveloped acreage, the Company controls approximately 99,200 gross (over 79,700 net) acres in Illinois, Indiana and Kentucky.

About Carrizo Oil & Gas

Carrizo Oil & Gas, Inc. is an energy company. The Company is engaged in the exploration, development and production of oil and gas from resource plays located in the United States. Its operations are focused in proven, producing oil and gas plays in the Eagle Ford Shale in South Texas, the Delaware Basin in West Texas, the Utica Shale in Ohio, the Niobrara Formation in Colorado, and the Marcellus Shale in Pennsylvania. As of December 31, 2016, the Company’s proved reserves of 200 million barrels of oil equivalent (MMBoe) were 64% crude oil, 12% natural gas liquids (NGLs) and 24% natural gas. As of December 31, 2016, it operated approximately 94% of the wells in Eagle Ford in which it held an interest. As of December 31, 2016, it held an average interest of approximately 85% in these operated wells. As of December 31, 2016, it owned leases covering approximately 309,200 gross (179,179 net) acres in the Eagle Ford, Niobrara, Utica and the Delaware Basin areas.

Receive News & Ratings for Rex Energy Corporation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Rex Energy Corporation and related companies with MarketBeat.com's FREE daily email newsletter.