Pacific Ethanol (NASDAQ: PEIX) and REX American Resources Corporation (NYSE:REX) are both small-cap oils/energy companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, valuation, analyst recommendations, dividends and profitability.
Earnings and Valuation
This table compares Pacific Ethanol and REX American Resources Corporation’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Pacific Ethanol||$1.62 billion||0.13||$1.41 million||($0.24)||-19.58|
|REX American Resources Corporation||$453.80 million||1.25||$32.33 million||$4.37||19.73|
REX American Resources Corporation has higher revenue, but lower earnings than Pacific Ethanol. Pacific Ethanol is trading at a lower price-to-earnings ratio than REX American Resources Corporation, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
78.2% of Pacific Ethanol shares are owned by institutional investors. Comparatively, 88.9% of REX American Resources Corporation shares are owned by institutional investors. 3.9% of Pacific Ethanol shares are owned by insiders. Comparatively, 12.2% of REX American Resources Corporation shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Risk & Volatility
Pacific Ethanol has a beta of 2.13, suggesting that its stock price is 113% more volatile than the S&P 500. Comparatively, REX American Resources Corporation has a beta of 1.62, suggesting that its stock price is 62% more volatile than the S&P 500.
This table compares Pacific Ethanol and REX American Resources Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|REX American Resources Corporation||6.26%||7.41%||6.37%|
This is a summary of current ratings for Pacific Ethanol and REX American Resources Corporation, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|REX American Resources Corporation||0||1||0||0||2.00|
Pacific Ethanol currently has a consensus target price of $13.00, suggesting a potential upside of 176.60%. Given Pacific Ethanol’s stronger consensus rating and higher probable upside, research analysts clearly believe Pacific Ethanol is more favorable than REX American Resources Corporation.
REX American Resources Corporation beats Pacific Ethanol on 8 of the 13 factors compared between the two stocks.
About Pacific Ethanol
Pacific Ethanol, Inc. (Pacific Ethanol) is a marketer and producer of low-carbon renewable fuels in the Western United States. Pacific Ethanol markets all the ethanol produced by four ethanol production facilities located in California, Idaho and Oregon, or the Pacific Ethanol Plants, all the ethanol produced by three other ethanol producers in the Western United States and ethanol purchased from other third-party suppliers throughout the United States. It also markets ethanol co-products, including wet distiller’s grains and syrup (WDG), for the Pacific Ethanol Plants. Its 83% ownership interest in New PE Holdco LLC, the owner of each of the plant holding companies, that collectively own the Pacific Ethanol Plants. Its ethanol customers are integrated oil companies and gasoline marketers who blend ethanol into gasoline. Effective September 02, 2014, Pacific Ethanol Inc raised its interest to 96% from 91%, by acquiring a 5% interest, in PE Op Co.
About REX American Resources Corporation
Rex American Resources Corporation is a holding company. As of January 31, 2017, the Company had invested in three ethanol production entities. It operates through alternative energy segment. As of January 31, 2017, the Company’s ethanol investments include One Earth Energy, LLC (One Earth), NuGen Energy, LLC (NuGen) and Big River Resources, LLC (Big River). One Earth has its ethanol production facility in Gibson City, Illinois. NuGen operates an ethanol producing facility in Marion, South Dakota. Big River is a holding company for various entities, including Big River Resources West Burlington, LLC, which operates an ethanol plant in West Burlington, Iowa. Big River has interest in Big River United Energy, LLC, which operates an ethanol production facility located in Dyersville, Iowa. Big River has interest in an ethanol production facility, which is located in Boyceville, Wisconsin.
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