Range Resources Corporation (NYSE: RRC) and LRR Energy (NYSE:LRE) are both oils/energy companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, risk, analyst recommendations, valuation, institutional ownership, profitability and earnings.

Profitability

This table compares Range Resources Corporation and LRR Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Range Resources Corporation 1.75% 0.67% 0.32%
LRR Energy -208.41% -34.35% -17.42%

Institutional and Insider Ownership

95.3% of Range Resources Corporation shares are held by institutional investors. 2.4% of Range Resources Corporation shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings for Range Resources Corporation and LRR Energy, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Range Resources Corporation 1 5 19 0 2.72
LRR Energy 0 0 0 0 N/A

Range Resources Corporation presently has a consensus price target of $38.80, suggesting a potential upside of 112.58%. Given Range Resources Corporation’s higher probable upside, research analysts clearly believe Range Resources Corporation is more favorable than LRR Energy.

Valuation & Earnings

This table compares Range Resources Corporation and LRR Energy’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Range Resources Corporation $2.03 billion 2.19 $914.36 million $0.08 228.15
LRR Energy N/A N/A N/A N/A N/A

Range Resources Corporation has higher revenue and earnings than LRR Energy.

Dividends

Range Resources Corporation pays an annual dividend of $0.08 per share and has a dividend yield of 0.4%. LRR Energy does not pay a dividend. Range Resources Corporation pays out 100.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. LRR Energy has increased its dividend for 5 consecutive years.

Summary

Range Resources Corporation beats LRR Energy on 10 of the 12 factors compared between the two stocks.

Range Resources Corporation Company Profile

Range Resources Corporation is an independent natural gas, natural gas liquids (NGLs) and oil company. The Company is engaged in the exploration and production of natural gas, NGLs and oil in the United States. It is engaged in the exploration, development and acquisition of natural gas and crude oil properties located primarily in the Appalachian and North Louisiana regions of the United States. Its principal areas of operation are the Marcellus Shale of Pennsylvania and the Lower Cotton Valley formation of North Louisiana. Its properties consist of interests in developed and undeveloped natural gas and oil leases. Its properties in the Appalachian region are located in the Appalachian Basin in the northeastern United States, predominantly in Pennsylvania. The Company’s other operations include drilling, production and field operations in the Texas Panhandle, as well as in the Anadarko Basin of Western Oklahoma and the Nemaha Uplift of Northern Oklahoma and Kansas.

LRR Energy Company Profile

LRR Energy, L.P. (LRR Energy) operates, acquires, exploits and develops producing oil and natural gas properties in North America. The Company’s properties consist of onshore oil and natural gas properties. Its oil and natural gas properties include the Permian Basin region in West Texas and Southeast New Mexico, the Mid-Continent region in Oklahoma and East Texas, and the Gulf Coast region in Texas. As of December 31, 2014, the Company’s total estimated proved reserves were approximately 33.8 million barrels of oil equivalent (MMBoe), of which approximately 88% were proved developed reserves (approximately 73% proved developed producing and approximately 15% proved developed non-producing). The Company’s general partner is LRE GP, LLC.

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