Pacific Ethanol (NASDAQ: PEIX) and REX American Resources (NYSE:REX) are both small-cap oils/energy companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, risk, valuation, profitability, earnings, institutional ownership and dividends.
Volatility and Risk
Pacific Ethanol has a beta of 2.07, suggesting that its stock price is 107% more volatile than the S&P 500. Comparatively, REX American Resources has a beta of 1.62, suggesting that its stock price is 62% more volatile than the S&P 500.
This is a breakdown of recent recommendations and price targets for Pacific Ethanol and REX American Resources, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|REX American Resources||0||0||0||0||N/A|
Pacific Ethanol currently has a consensus price target of $11.50, suggesting a potential upside of 152.75%. Given Pacific Ethanol’s higher probable upside, equities research analysts plainly believe Pacific Ethanol is more favorable than REX American Resources.
Valuation & Earnings
This table compares Pacific Ethanol and REX American Resources’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Pacific Ethanol||$1.62 billion||0.12||$1.41 million||($0.24)||-18.96|
|REX American Resources||$453.80 million||1.26||$32.33 million||$5.02||17.29|
REX American Resources has lower revenue, but higher earnings than Pacific Ethanol. Pacific Ethanol is trading at a lower price-to-earnings ratio than REX American Resources, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
80.5% of Pacific Ethanol shares are owned by institutional investors. Comparatively, 89.7% of REX American Resources shares are owned by institutional investors. 3.9% of Pacific Ethanol shares are owned by company insiders. Comparatively, 12.2% of REX American Resources shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This table compares Pacific Ethanol and REX American Resources’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|REX American Resources||7.11%||8.29%||7.15%|
REX American Resources beats Pacific Ethanol on 8 of the 12 factors compared between the two stocks.
Pacific Ethanol Company Profile
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.
REX American Resources Company Profile
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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