REX American Resources (NYSE:REX) and Renewable Energy Group (NASDAQ:REGI) are both oils/energy companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, risk, institutional ownership, valuation and profitability.
Insider & Institutional Ownership
84.8% of REX American Resources shares are held by institutional investors. Comparatively, 96.2% of Renewable Energy Group shares are held by institutional investors. 11.4% of REX American Resources shares are held by insiders. Comparatively, 3.0% of Renewable Energy Group shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Volatility & Risk
REX American Resources has a beta of 1.16, meaning that its stock price is 16% more volatile than the S&P 500. Comparatively, Renewable Energy Group has a beta of 1.19, meaning that its stock price is 19% more volatile than the S&P 500.
Valuation and Earnings
This table compares REX American Resources and Renewable Energy Group's gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
REX American Resources | $418.03 million | 1.22 | $7.43 million | $1.18 | 72.12 |
Renewable Energy Group | $2.64 billion | 1.02 | $389.73 million | $3.75 | 16.18 |
Renewable Energy Group has higher revenue and earnings than REX American Resources. Renewable Energy Group 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.
Profitability
This table compares REX American Resources and Renewable Energy Group's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
REX American Resources | 1.05% | 0.87% | 0.80% |
Renewable Energy Group | 22.72% | 13.11% | 9.25% |
Analyst Ratings
This is a breakdown of current recommendations for REX American Resources and Renewable Energy Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
REX American Resources | 0 | 0 | 1 | 0 | 3.00 |
Renewable Energy Group | 0 | 2 | 8 | 0 | 2.80 |
Renewable Energy Group has a consensus target price of $89.1250, indicating a potential upside of 46.88%. Given Renewable Energy Group's higher possible upside, analysts clearly believe Renewable Energy Group is more favorable than REX American Resources.
Summary
Renewable Energy Group beats REX American Resources on 10 of the 14 factors compared between the two stocks.