Contrasting Renewable Energy Group (REGI) & REX American Resources (REX)

Renewable Energy Group (NASDAQ: REGI) and REX American Resources (NYSE:REX) are both small-cap oils/energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, risk, valuation, institutional ownership, profitability, analyst recommendations and dividends.

Insider and Institutional Ownership

92.7% of REX American Resources shares are owned by institutional investors. 2.0% of Renewable Energy Group shares are owned by company insiders. Comparatively, 12.5% of REX American Resources shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Renewable Energy Group and REX American Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Renewable Energy Group 6.23% 29.89% 16.15%
REX American Resources 8.77% 6.18% 5.41%

Analyst Recommendations

This is a summary of current ratings for Renewable Energy Group and REX American Resources, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Renewable Energy Group 0 1 2 0 2.67
REX American Resources 0 0 0 0 N/A

Renewable Energy Group currently has a consensus target price of $16.67, suggesting a potential downside of 1.67%. Given Renewable Energy Group’s higher probable upside, research analysts clearly believe Renewable Energy Group is more favorable than REX American Resources.

Earnings & Valuation

This table compares Renewable Energy Group and REX American Resources’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Renewable Energy Group $2.16 billion 0.29 -$79.07 million ($2.04) -8.31
REX American Resources $452.59 million 1.09 $39.70 million N/A N/A

REX American Resources has lower revenue, but higher earnings than Renewable Energy Group.

Volatility and Risk

Renewable Energy Group has a beta of 0.96, meaning that its share price is 4% less volatile than the S&P 500. Comparatively, REX American Resources has a beta of 1.59, meaning that its share price is 59% more volatile than the S&P 500.

Summary

REX American Resources beats Renewable Energy Group on 6 of the 11 factors compared between the two stocks.

About Renewable Energy Group

Renewable Energy Group, Inc. produces and sells biofuels and renewable chemicals in North America. The company operates through Biomass-Based Diesel, Services, Renewable Chemicals, and Corporate and Other segments. It acquires feedstock; and manages construction and operates biomass-based diesel production facilities. The company also produces biomass-based diesel from a range of feedstocks, including inedible corn oil, used cooking oil, and inedible animal fat, as well as soybean or canola oil; and markets, distributes, and sells biomass-based diesel and its co-products. In addition, it is involved in the purchase and resale of biomass-based diesel, petroleum-based diesel, renewable identification numbers, California Low Carbon Fuel Standard credits, and raw material feedstocks acquired from third parties; and sale of glycerin, free fatty acids, naphtha, and other co-products of the biomass-based diesel production process. Further, the company provides facility management and operational services to biomass-based diesel production facilities, as well as to other clean-tech companies; and construction management services for biomass-based diesel production facilities. Additionally, it engages in the production of renewable chemicals, advanced biofuels, and other products; and trading of petroleum-based heating oil and diesel fuel. Renewable Energy Group, Inc. was founded in 1996 and is headquartered in Ames, Iowa.

About REX American Resources

REX American Resources Corporation, together with its subsidiaries, produces and sells ethanol. It operates through two segments, Ethanol and By-Products, and Refined Coal. The company also offers dried distillers grains, modified distillers grains, and non-food grade corn oil. In addition, it provides dry distillers grains with solubles, which is used as a protein in animal feed; and produces, processes, and sells refined coal. The company was formerly known as REX Stores Corporation and changed its name to REX American Resources Corporation in 2010. REX American Resources Corporation was founded in 1980 and is headquartered in Dayton, Ohio.

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