Range Resources (RRC) versus Its Peers Critical Comparison

Range Resources (NYSE:RRC) is one of 1,050 public companies in the “Oil, Gas & Consumable Fuels” industry, but how does it contrast to its peers? We will compare Range Resources to related companies based on the strength of its risk, institutional ownership, dividends, analyst recommendations, earnings, valuation and profitability.

Dividends

Range Resources pays an annual dividend of $0.40 per share and has a dividend yield of 0.7%. Range Resources pays out 10.6% of its earnings in the form of a dividend. As a group, “Oil, Gas & Consumable Fuels” companies pay a dividend yield of 8.6% and pay out -122.2% of their earnings in the form of a dividend. Range Resources has raised its dividend for 1 consecutive years. Range Resources lags its peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Risk & Volatility

Range Resources has a beta of 0.71, meaning that its stock price is 29% less volatile than the S&P 500. Comparatively, Range Resources’ peers have a beta of -4.04, meaning that their average stock price is 504% less volatile than the S&P 500.

Insider and Institutional Ownership

98.9% of Range Resources shares are owned by institutional investors. Comparatively, 30.7% of shares of all “Oil, Gas & Consumable Fuels” companies are owned by institutional investors. 1.1% of Range Resources shares are owned by company insiders. Comparatively, 15.5% of shares of all “Oil, Gas & Consumable Fuels” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Range Resources and its peers gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Range Resources	$3.12 billion	$658.02 million	14.44
Range Resources Competitors	$272.19 billion	$5.51 billion	0.23

Range Resources’ peers have higher revenue and earnings than Range Resources. Range Resources is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Analyst Recommendations

This is a summary of current ratings for Range Resources and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Range Resources	1	18	3	1	2.17
Range Resources Competitors	5964	26943	40767	2408	2.52

Range Resources currently has a consensus price target of $46.22, indicating a potential downside of 15.07%. As a group, “Oil, Gas & Consumable Fuels” companies have a potential upside of 21.79%. Given Range Resources’ peers stronger consensus rating and higher possible upside, analysts clearly believe Range Resources has less favorable growth aspects than its peers.

Profitability

This table compares Range Resources and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Range Resources	25.25%	19.15%	11.79%
Range Resources Competitors	-471.71%	20.53%	6.26%

Summary

Range Resources peers beat Range Resources on 9 of the 15 factors compared.

Range Resources Company Profile

Range Resources Corporation operates as an independent natural gas, natural gas liquids (NGLs), crude oil, and condensate company in the United States. The company engages in the exploration, development, and acquisition of natural gas and crude oil properties located in the Appalachian region. It sells natural gas to utilities, marketing and midstream companies, and industrial users; NGLs to petrochemical end users, marketers/traders, and natural gas processors; and oil and condensate to crude oil processors, transporters, and refining and marketing companies. The company was formerly known as Lomak Petroleum Inc. and changed its name to Range Resources Corporation in August 1998. Range Resources Corporation was founded in 1976 and is headquartered in Fort Worth, Texas.