Financial Analysis: EOG Resources (EOG) versus Range Resources-Louisiana (MRD)

EOG Resources (NYSE: EOG) and Range Resources-Louisiana (NASDAQ:MRD) are both oils/energy companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, profitability, risk, valuation, analyst recommendations, institutional ownership and dividends.

Dividends

EOG Resources pays an annual dividend of $0.67 per share and has a dividend yield of 0.6%. Range Resources-Louisiana does not pay a dividend. EOG Resources pays out 6,700.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Ratings

This is a summary of current recommendations for EOG Resources and Range Resources-Louisiana, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
EOG Resources 0 7 18 0 2.72
Range Resources-Louisiana 0 0 0 0 N/A

EOG Resources presently has a consensus price target of $114.13, suggesting a potential downside of 0.21%. Given EOG Resources’ higher possible upside, analysts clearly believe EOG Resources is more favorable than Range Resources-Louisiana.

Institutional and Insider Ownership

85.3% of EOG Resources shares are owned by institutional investors. Comparatively, 85.3% of Range Resources-Louisiana shares are owned by institutional investors. 0.5% of EOG Resources shares are owned by insiders. Comparatively, 51.1% of Range Resources-Louisiana shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares EOG Resources and Range Resources-Louisiana’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
EOG Resources 0.10% 1.73% 0.82%
Range Resources-Louisiana -197.84% -39.17% -21.83%

Valuation & Earnings

This table compares EOG Resources and Range Resources-Louisiana’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
EOG Resources $7.65 billion 8.64 -$1.10 billion $0.01 11,437.00
Range Resources-Louisiana N/A N/A N/A $0.23 64.00

Range Resources-Louisiana has lower revenue, but higher earnings than EOG Resources. Range Resources-Louisiana is trading at a lower price-to-earnings ratio than EOG Resources, indicating that it is currently the more affordable of the two stocks.

Summary

EOG Resources beats Range Resources-Louisiana on 8 of the 12 factors compared between the two stocks.

EOG Resources Company Profile

EOG Resources, Inc. explores for, develops, produces and markets crude oil and natural gas in major producing basins in the United States, The Republic of Trinidad and Tobago, the United Kingdom, The People’s Republic of China, Canada and, from time to time, select other international areas. Its operations are all crude oil and natural gas exploration and production related. As of December 31, 2016, its total estimated net proved reserves were over 2,147 million barrels of oil equivalent (MMBoe), of which over 1178 million barrels (MMBbl) were crude oil and condensate reserves, over 416 MMBbl were natural gas liquids reserves and over 3318 billion cubic feet, or 553 MMBoe, were natural gas reserves. Its operations are focused in the productive basins in the United States with a focus on crude oil and, to a lesser extent, liquids-rich natural gas plays. It has operations offshore Trinidad, in the United Kingdom East Irish Sea, in the China Sichuan Basin and in Canada.

Range Resources-Louisiana Company Profile

Range Resources-Louisiana, Inc., formerly Memorial Resource Development Corp, is an independent natural gas and oil company focused on the acquisition, exploration and development of natural gas and oil properties with substantially all of its activities in the Terryville Complex of North Louisiana. The Company’s segments include MRD and Memorial Production Partners LP (MEMP). The MRD Segment is focused on the acquisition, exploration, and development of natural gas and oil properties primarily in the Cotton Valley formation in North Louisiana. The MEMP Segment is engaged in the acquisition, exploitation, development and production of oil and natural gas properties, with assets consisting primarily of producing oil and natural gas properties that are located in Texas, Louisiana, Colorado, Wyoming and offshore Southern California. The MEMP segment reflects the combined operations of MEMP and its subsidiaries.

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