Noble Corporation (NYSE: NE) and Ring Energy (NYSE:REI) are both small-cap oils/energy companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, valuation, profitability, dividends, risk and analyst recommendations.

Valuation and Earnings

This table compares Noble Corporation and Ring Energy’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Noble Corporation $1.40 billion 0.69 $639.70 million ($7.21) -0.55
Ring Energy $42.26 million 16.66 $21.77 million N/A N/A

Noble Corporation has higher revenue and earnings than Ring Energy.

Institutional & Insider Ownership

95.6% of Noble Corporation shares are held by institutional investors. 1.6% of Noble Corporation shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Noble Corporation and Ring Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Noble Corporation -122.04% -3.19% -1.83%
Ring Energy N/A N/A N/A

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Noble Corporation and Ring Energy, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Noble Corporation 6 17 4 0 1.93
Ring Energy 0 0 6 0 3.00

Noble Corporation presently has a consensus price target of $5.65, indicating a potential upside of 42.74%. Ring Energy has a consensus price target of $18.60, indicating a potential upside of 43.08%. Given Ring Energy’s stronger consensus rating and higher possible upside, analysts clearly believe Ring Energy is more favorable than Noble Corporation.

Summary

Ring Energy beats Noble Corporation on 7 of the 11 factors compared between the two stocks.

Noble Corporation Company Profile

Noble Corporation is an offshore drilling contractor for the oil and gas industry. The Company performs contract drilling services with its fleet of 79 mobile offshore drilling units and one floating production storage and offloading unit (NYSE:NE) located globally.

Ring Energy Company Profile

Ring Energy, Inc. acquires, explores for, develops, and produces oil and natural gas in Texas and Kansas, the United States. As of December 31, 2016, its proved reserves consisted of approximately 27.7 million barrel of oil equivalent. The company also owns interests in 32,663 net developed and undeveloped acres in Andrews and Gaines counties, and 20,490 net developed and undeveloped acres in Reeves and Culberson counties, Texas; and 14,549 net developed and undeveloped acres in Kansas. It primarily sells its oil and natural gas production to end users, marketers, and other purchasers. The company was formerly known as Transglobal Mining Corp. and changed its name to Ring Energy, Inc. in March 2008. Ring Energy, Inc. was founded in 2004 and is headquartered in Midland, Texas.

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