Rex Energy (REXX) and Chesapeake Energy (CHK) Head to Head Contrast

Rex Energy (NASDAQ: REXX) and Chesapeake Energy (NYSE:CHK) are both energy companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, profitability, earnings, dividends, institutional ownership, analyst recommendations and risk.

Institutional & Insider Ownership

12.2% of Rex Energy shares are held by institutional investors. Comparatively, 64.6% of Chesapeake Energy shares are held by institutional investors. 7.9% of Rex Energy shares are held by insiders. Comparatively, 1.1% of Chesapeake Energy shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and target prices for Rex Energy and Chesapeake Energy, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rex Energy 0 5 0 0 2.00
Chesapeake Energy 6 10 4 0 1.90

Rex Energy currently has a consensus target price of $5.34, indicating a potential upside of 408.76%. Chesapeake Energy has a consensus target price of $5.24, indicating a potential upside of 63.65%. Given Rex Energy’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Rex Energy is more favorable than Chesapeake Energy.

Profitability

This table compares Rex Energy and Chesapeake Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rex Energy -97.00% N/A -20.71%
Chesapeake Energy 2.77% -19.93% 4.34%

Valuation and Earnings

This table compares Rex Energy and Chesapeake Energy’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Rex Energy $139.02 million 0.08 -$176.71 million ($13.31) -0.08
Chesapeake Energy $7.87 billion 0.37 -$4.40 billion ($0.58) -5.52

Rex Energy has higher earnings, but lower revenue than Chesapeake Energy. Chesapeake Energy is trading at a lower price-to-earnings ratio than Rex Energy, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Rex Energy has a beta of 1.88, meaning that its stock price is 88% more volatile than the S&P 500. Comparatively, Chesapeake Energy has a beta of 1.83, meaning that its stock price is 83% more volatile than the S&P 500.

Rex Energy Company Profile

Rex Energy Corporation is an independent oil, natural gas liquid (NGL) and natural gas company. The Company has operations in the Appalachian Basin and Illinois Basin. In the Appalachian Basin, the Company is focused on its Marcellus Shale, Utica Shale and Upper Devonian (Burkett) Shale drilling and exploration activities. In the Illinois Basin, the Company is focused on its developmental oil drilling on its properties. The Company owns an interest in approximately 1,820 oil and natural gas wells. The Company produces an average of over 195.8 net millions of cubic feet equivalent (MMcfe) per day, composed of approximately 62.4% natural gas, over 9.5% oil and approximately 28.1% NGLs. In the Illinois Basin, the Company produces an average of approximately 1,998 barrels of oil per day (bopd). Including both developed and undeveloped acreage, the Company controls approximately 99,200 gross (over 79,700 net) acres in Illinois, Indiana and Kentucky.

Chesapeake Energy Company Profile

Chesapeake Energy Corporation produces natural gas, oil and natural gas liquids (NGL) in the United States. It operates in two segments: Exploration and Production, and Marketing, Gathering and Compression. Exploration and production is engaged in finding and producing oil, natural gas and NGL. Marketing, gathering and compression is engaged in marketing, gathering and compression of oil, natural gas and NGL. As of December 31, 2016, it owned interests in approximately 22,700 oil and natural gas wells. It has a diverse resource base of onshore the United States unconventional natural gas and liquids assets. It has positions in resource plays of the Eagle Ford Shale in South Texas, the Utica Shale in Ohio, the Anadarko Basin in northwestern Oklahoma and the stacked pay in the Powder River Basin in Wyoming. Its natural gas resource plays are the Haynesville/Bossier Shales in northwestern Louisiana and East Texas and the Marcellus Shale in the northern Appalachian Basin in Pennsylvania.

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