RSP Permian (NYSE: RSPP) and Pioneer Natural Resources (NYSE:PXD) are both mid-cap oils/energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, profitability, institutional ownership, earnings, valuation, dividends and analyst recommendations.
Pioneer Natural Resources pays an annual dividend of $0.08 per share and has a dividend yield of 0.1%. RSP Permian does not pay a dividend. Pioneer Natural Resources pays out 8.2% of its earnings in the form of a dividend.
Risk & Volatility
RSP Permian has a beta of 2.15, indicating that its stock price is 115% more volatile than the S&P 500. Comparatively, Pioneer Natural Resources has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500.
This is a summary of recent ratings and price targets for RSP Permian and Pioneer Natural Resources, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Pioneer Natural Resources||0||3||19||0||2.86|
RSP Permian currently has a consensus price target of $47.15, suggesting a potential upside of 43.63%. Pioneer Natural Resources has a consensus price target of $201.21, suggesting a potential upside of 39.72%. Given RSP Permian’s stronger consensus rating and higher probable upside, research analysts clearly believe RSP Permian is more favorable than Pioneer Natural Resources.
Valuation and Earnings
This table compares RSP Permian and Pioneer Natural Resources’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|RSP Permian||$569.59 million||9.14||$412.26 million||$0.48||68.40|
|Pioneer Natural Resources||$4.89 billion||5.01||$1.79 billion||$0.98||146.95|
Pioneer Natural Resources has higher revenue and earnings than RSP Permian. RSP Permian is trading at a lower price-to-earnings ratio than Pioneer Natural Resources, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
86.6% of RSP Permian shares are held by institutional investors. Comparatively, 91.6% of Pioneer Natural Resources shares are held by institutional investors. 15.0% of RSP Permian shares are held by insiders. Comparatively, 0.9% of Pioneer Natural Resources 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.
This table compares RSP Permian and Pioneer Natural Resources’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Pioneer Natural Resources||3.10%||1.79%||1.15%|
RSP Permian beats Pioneer Natural Resources on 11 of the 17 factors compared between the two stocks.
RSP Permian Company Profile
RSP Permian, Inc. is an independent oil and natural gas company. The Company is engaged in the acquisition, exploration, development and production of unconventional oil and associated liquids-rich natural gas reserves in the Permian Basin of West Texas. The Company’s properties are located on contiguous acreage blocks in the Midland Basin, and the Delaware Basin, both sub-basins of the Permian Basin. The Midland Basin properties are primarily in the adjacent counties of Midland, Martin, Andrews, Ector, Glasscock and Dawson. The Delaware Basin properties are in Loving and Winkler counties. The Company has drilled Lower Spraberry horizontal well and a Middle Spraberry horizontal well in the Permian Basin. In addition, it has also drilled a Wolfcamp B horizontal well in the North Midland Basin.
Pioneer Natural Resources Company Profile
Pioneer Natural Resources Company is an oil and gas exploration and production company. The Company explores for, develops and produces oil, natural gas liquids (NGLs) and gas within the United States, with operations primarily in the Permian Basin in West Texas, the Eagle Ford Shale play in South Texas, the Raton field in southeast Colorado and the West Panhandle field in the Texas Panhandle. As of December 31, 2016, the Company owned interests in eight gas processing plants and nine treating facilities. As of December 31, 2016, its Spraberry/Wolfcamp field covered approximately 800,000 gross acres (690,000 net acres). The Company completed 12 Eagle Ford Shale wells during the fiscal year ended December 31, 2016. As of December 31, 2016, the Company owned approximately 185,000 gross acres (165,000 net acres) in the center of the Raton Basin. As of December 31, 2016, the Company’s gas had an average energy content of 1,400 British thermal unit (Btu).
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