Rancher Energy (OTCMKTS:TRXO) and QEP Resources (NYSE:QEP) are both small-cap oils/energy companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, institutional ownership, profitability, earnings, dividends and valuation.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Rancher Energy and QEP Resources, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rancher Energy 0 0 0 0 N/A
QEP Resources 0 10 6 0 2.38

QEP Resources has a consensus price target of $13.33, indicating a potential upside of 68.27%. Given QEP Resources’ higher possible upside, analysts plainly believe QEP Resources is more favorable than Rancher Energy.

Profitability

This table compares Rancher Energy and QEP Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rancher Energy N/A N/A N/A
QEP Resources -11.89% 7.86% 3.78%

Earnings and Valuation

This table compares Rancher Energy and QEP Resources’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Rancher Energy $550,000.00 3.93 -$15.70 million N/A N/A
QEP Resources $1.62 billion 1.16 $269.30 million $0.77 10.29

QEP Resources has higher revenue and earnings than Rancher Energy.

Risk and Volatility

Rancher Energy has a beta of 2.21, suggesting that its stock price is 121% more volatile than the S&P 500. Comparatively, QEP Resources has a beta of 2.1, suggesting that its stock price is 110% more volatile than the S&P 500.

Insider and Institutional Ownership

99.2% of QEP Resources shares are held by institutional investors. 18.4% of Rancher Energy shares are held by company insiders. Comparatively, 1.6% of QEP Resources shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

QEP Resources beats Rancher Energy on 7 of the 11 factors compared between the two stocks.

About Rancher Energy

T-Rex Oil, Inc. engages in the acquisition, exploration, and development of oil and gas properties in the United States. The company owns various properties, which are primarily located in the Rocky Mountain region of Wyoming, as well as Nebraska. T-Rex Oil, Inc. is headquartered in Broomfield, Colorado.

About QEP Resources

QEP Resources, Inc., through its subsidiaries, operates as a natural gas and crude oil exploration and production company in the United States. The company conducts exploration and production activities in the Permian Basin in western Texas, Williston Basin in North Dakota, Haynesville/Cotton Valley in northwestern Louisiana, Uinta Basin in eastern Utah, and other proven properties in Wyoming, Utah, and Colorado. As of December 31, 2017, it had estimated proved reserves of 684.7 MMboe. The company sells its gas, oil, and natural gas liquids (NGL) to various customers, including wholesale marketers, industrial users, local distribution companies, utilities, and other companies. In addition, it operates an underground gas storage facility. QEP Resources, Inc. is headquartered in Denver, Colorado.

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