Contrasting ConocoPhillips (NYSE:COP) and Range Resources (NYSE:RRC)

ConocoPhillips (NYSE:COP) and Range Resources (NYSE:RRC) are both energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, valuation, profitability, institutional ownership, analyst recommendations, risk and dividends.

Insider and Institutional Ownership

82.4% of ConocoPhillips shares are owned by institutional investors. Comparatively, 98.9% of Range Resources shares are owned by institutional investors. 0.1% of ConocoPhillips shares are owned by company insiders. Comparatively, 1.1% of Range Resources shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Dividends

ConocoPhillips pays an annual dividend of $3.36 per share and has a dividend yield of 2.7%. Range Resources pays an annual dividend of $0.40 per share and has a dividend yield of 1.0%. ConocoPhillips pays out 44.4% of its earnings in the form of a dividend. Range Resources pays out 11.0% 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 raised its dividend for 1 consecutive years.

Volatility and Risk

ConocoPhillips has a beta of 0.24, indicating that its stock price is 76% less volatile than the S&P 500. Comparatively, Range Resources has a beta of 0.71, indicating that its stock price is 29% less volatile than the S&P 500.

Profitability

This table compares ConocoPhillips and Range Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ConocoPhillips	14.22%	14.72%	7.77%
Range Resources	25.04%	18.63%	11.23%

Analyst Ratings

This is a breakdown of recent recommendations and price targets for ConocoPhillips and Range Resources, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ConocoPhillips	2	7	18	1	2.64
Range Resources	1	15	2	1	2.16

ConocoPhillips presently has a consensus target price of $141.24, indicating a potential upside of 11.40%. Range Resources has a consensus target price of $44.00, indicating a potential upside of 15.00%. Given Range Resources’ higher probable upside, analysts plainly believe Range Resources is more favorable than ConocoPhillips.

Valuation & Earnings

This table compares ConocoPhillips and Range Resources”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ConocoPhillips	$61.55 billion	2.47	$7.99 billion	$7.56	16.77
Range Resources	$3.12 billion	2.87	$658.02 million	$3.62	10.57

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

Summary

Range Resources beats ConocoPhillips on 10 of the 17 factors compared between the two stocks.

About ConocoPhillips

ConocoPhillips explores for, produces, transports, and markets crude oil, bitumen, natural gas, liquefied natural gas (LNG), and natural gas liquids in the United States, Canada, China, Libya, Malaysia, Norway, the United Kingdom, and internationally. The company's portfolio includes unconventional plays in North America; conventional assets in North America, Europe, Asia, and Australia; global LNG developments; oil sands assets in Canada; and an inventory of global exploration prospects. ConocoPhillips was founded in 1917 and is headquartered in Houston, Texas.

About Range Resources

Range Resources Corporation operates as an independent natural gas, natural gas liquids (NGLs), crude oil, and condensate company in the United States. The company engages in the exploration, development, and acquisition of natural gas and crude oil properties located in the Appalachian region. It sells natural gas to utilities, marketing and midstream companies, and industrial users; NGLs to 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 August 1998. Range Resources Corporation was founded in 1976 and is headquartered in Fort Worth, Texas.