Range Resources (NYSE:RRC – Get Free Report) and Barnwell Industries (NYSE:BRN – Get Free Report) are both oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, institutional ownership, valuation and risk.
Analyst Ratings
This is a breakdown of recent ratings and price targets for Range Resources and Barnwell Industries, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Range Resources | 2 | 6 | 12 | 0 | 2.50 |
| Barnwell Industries | 0 | 0 | 0 | 0 | N/A |
Range Resources presently has a consensus target price of $35.00, indicating a potential upside of 5.96%. Given Range Resources’ higher probable upside, equities research analysts clearly believe Range Resources is more favorable than Barnwell Industries.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Range Resources | $4.08 billion | 1.95 | $1.18 billion | $6.87 | 4.81 |
| Barnwell Industries | $28.55 million | 0.87 | $5.51 million | ($0.09) | -27.67 |
Range Resources has higher revenue and earnings than Barnwell Industries. Barnwell Industries is trading at a lower price-to-earnings ratio than Range Resources, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Range Resources has a beta of 2.09, suggesting that its stock price is 109% more volatile than the S&P 500. Comparatively, Barnwell Industries has a beta of 0.39, suggesting that its stock price is 61% less volatile than the S&P 500.
Insider & Institutional Ownership
94.7% of Range Resources shares are owned by institutional investors. Comparatively, 9.4% of Barnwell Industries shares are owned by institutional investors. 1.6% of Range Resources shares are owned by company insiders. Comparatively, 16.3% of Barnwell Industries shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Profitability
This table compares Range Resources and Barnwell Industries’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Range Resources | 37.22% | 31.85% | 13.73% |
| Barnwell Industries | -3.76% | -5.28% | -2.79% |
Dividends
Range Resources pays an annual dividend of $0.32 per share and has a dividend yield of 1.0%. Barnwell Industries pays an annual dividend of $0.06 per share and has a dividend yield of 2.4%. Range Resources pays out 4.7% of its earnings in the form of a dividend. Barnwell Industries pays out -66.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Range Resources has increased its dividend for 1 consecutive years. Barnwell Industries is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Range Resources beats Barnwell Industries on 13 of the 16 factors compared between the two stocks.
About Range Resources
Range Resources Corporation operates as an independent natural gas, natural gas liquids (NGLs), and oil company in the United States. The company engages in the exploration, development, and acquisition of natural gas and oil properties. It markets and sells natural gas and NGLs to utilities, marketing and midstream companies, and industrial users; petrochemical end users, marketers/traders, and natural gas processors; and oil and condensate to crude oil processors, transporters, and refining and marketing companies. The company was formerly known as Lomak Petroleum, Inc. and changed its name to Range Resources Corporation in 1998. The company was founded in 1976 and is headquartered in Fort Worth, Texas.
About Barnwell Industries
Barnwell Industries, Inc. acquires, develops, produces, and sells oil and natural gas in Canada. It operates through three segments: Oil and Natural Gas, Land Investment, and Contract Drilling. The company acquires and develops crude oil and natural gas assets in the province of Alberta; and invests in land interests in Hawaii. It also owns and operates five water well drilling rigs, two pump rigs, and other ancillary drilling and pump equipment; drills water and water monitoring wells of varying depths; installs and repairs water pumping systems; and distributes trillium flow technologies. Barnwell Industries, Inc. was incorporated in 1956 and is based in Honolulu, Hawaii.
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