Head to Head Analysis: Riley Exploration Permian (NYSE:REPX) and BW LPG (NYSE:BWLP)

Riley Exploration Permian (NYSE:REPX) and BW LPG (NYSE:BWLP) are both energy companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, earnings, risk, analyst recommendations, dividends, institutional ownership and profitability.

Profitability

This table compares Riley Exploration Permian and BW LPG’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Riley Exploration Permian	28.48%	23.82%	11.31%
BW LPG	12.64%	22.48%	13.50%

Risk and Volatility

Riley Exploration Permian has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500. Comparatively, BW LPG has a beta of 0.97, indicating that its stock price is 3% less volatile than the S&P 500.

Valuation and Earnings

This table compares Riley Exploration Permian and BW LPG”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Riley Exploration Permian	$483.86 million	2.21	$111.59 million	$5.52	8.76
BW LPG	$3.58 billion	1.07	$242.31 million	$2.94	8.59

BW LPG has higher revenue and earnings than Riley Exploration Permian. BW LPG is trading at a lower price-to-earnings ratio than Riley Exploration Permian, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings for Riley Exploration Permian and BW LPG, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Riley Exploration Permian	0	1	3	0	2.75
BW LPG	0	1	4	0	2.80

Riley Exploration Permian currently has a consensus target price of $43.00, indicating a potential downside of 11.05%. Given Riley Exploration Permian’s higher probable upside, analysts plainly believe Riley Exploration Permian is more favorable than BW LPG.

Insider and Institutional Ownership

58.9% of Riley Exploration Permian shares are held by institutional investors. 4.2% of Riley Exploration Permian shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Dividends

Riley Exploration Permian pays an annual dividend of $1.68 per share and has a dividend yield of 3.5%. BW LPG pays an annual dividend of $3.80 per share and has a dividend yield of 15.0%. Riley Exploration Permian pays out 30.4% of its earnings in the form of a dividend. BW LPG pays out 129.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Riley Exploration Permian has raised its dividend for 3 consecutive years.

Summary

Riley Exploration Permian beats BW LPG on 10 of the 17 factors compared between the two stocks.

About Riley Exploration Permian

Riley Exploration Permian, Inc., an independent oil and natural gas company, engages in the acquisition, exploration, development, and production of oil, natural gas, and natural gas liquids in Texas and New Mexico. The company's activities are primarily focused on the Northwest Shelf and Yeso trend of the Permian Basin. Its acreage is primarily located on contiguous blocks in Yoakum County, Texas; and Eddy County, New Mexico. Riley Exploration Permian, Inc. is headquartered in Oklahoma City, Oklahoma.

About BW LPG

BW LPG Limited, an investment holding company, engages in ship owning and chartering activities worldwide. The company operates through Shipping and Product Services segments. The company involved in the transportation of liquefied petroleum gas to oil companies, and trading and utility companies. It also offers integrated liquified petroleum gas (LPG) delivery services and support; wholesale and trade of LPG; and management services. It owns and operates LPG vessels and a fleet of very large gas carriers. The company was formerly known as BW Gas LPG Holding Limited and changed its name to BW LPG Limited in September 2013. BW LPG Limited was founded in 1935 and is headquartered in Singapore.