Comparing LRR Energy (LRE) & Range Resources Corporation (RRC)

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

Earnings & Valuation

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
LRR Energy N/A N/A N/A N/A N/A
Range Resources Corporation $2.03 billion 2.23 $914.36 million $0.08 231.78

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. Range Resources Corporation has raised its dividend for 5 consecutive years.

Profitability

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

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

Analyst Ratings

This is a summary of current ratings and recommmendations for LRR Energy and Range Resources Corporation, as provided by MarketBeat.com.

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

Range Resources Corporation has a consensus price target of $38.80, suggesting a potential upside of 109.25%. Given Range Resources Corporation’s higher possible upside, analysts plainly believe Range Resources Corporation is more favorable than LRR Energy.

Insider and Institutional Ownership

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

Summary

Range Resources Corporation beats LRR Energy on 11 of the 12 factors compared between the two stocks.

About LRR Energy

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.

About Range Resources Corporation

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.

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