Critical Review: REX American Resources (REX) and Its Peers

REX American Resources (NYSE:REX) is one of 1,051 public companies in the “Oil, Gas & Consumable Fuels” industry, but how does it compare to its rivals? We will compare REX American Resources to related companies based on the strength of its risk, earnings, profitability, institutional ownership, analyst recommendations, valuation and dividends.

Volatility & Risk

REX American Resources has a beta of 0.6, indicating that its stock price is 40% less volatile than the S&P 500. Comparatively, REX American Resources’ rivals have a beta of -3.76, indicating that their average stock price is 476% less volatile than the S&P 500.

Institutional & Insider Ownership

88.1% of REX American Resources shares are owned by institutional investors. Comparatively, 30.8% of shares of all “Oil, Gas & Consumable Fuels” companies are owned by institutional investors. 13.2% of REX American Resources shares are owned by company insiders. Comparatively, 15.3% of shares of all “Oil, Gas & Consumable Fuels” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares REX American Resources and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
REX American Resources	$650.49 million	$82.95 million	10.89
REX American Resources Competitors	$273.06 billion	$5.52 billion	-0.44

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

Profitability

This table compares REX American Resources and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
REX American Resources	18.31%	16.90%	15.01%
REX American Resources Competitors	-469.71%	19.37%	6.42%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for REX American Resources and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
REX American Resources	0	0	1	0	3.00
REX American Resources Competitors	5976	26976	40834	2413	2.52

As a group, “Oil, Gas & Consumable Fuels” companies have a potential upside of 28.80%. Given REX American Resources’ rivals higher possible upside, analysts plainly believe REX American Resources has less favorable growth aspects than its rivals.

Summary

REX American Resources beats its rivals on 7 of the 13 factors compared.

REX American Resources Company Profile

REX American Resources Corporation, together with its subsidiaries, produces and sells ethanol in the United States. The company also offers corn, distillers grains, ethanol, distillers corn oil, gasoline, and natural gas. In addition, it provides dry distillers grains with solubles, which is used as a protein in animal feed. The company was formerly known as REX Stores Corporation and changed its name to REX American Resources Corporation in 2010. REX American Resources Corporation was founded in 1980 and is headquartered in Dayton, Ohio.