Comparing Energy XXI Gulf Coast (EGC) & Rex Energy (REXX)

Rex Energy (NASDAQ: REXX) and Energy XXI Gulf Coast (NASDAQ:EGC) are both small-cap oils/energy companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, earnings, valuation, risk and dividends.

Profitability

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

Net Margins Return on Equity Return on Assets
Rex Energy -61.80% N/A -3.76%
Energy XXI Gulf Coast -63.63% -50.61% -11.74%

Institutional and Insider Ownership

10.3% of Rex Energy shares are owned by institutional investors. Comparatively, 68.5% of Energy XXI Gulf Coast shares are owned by institutional investors. 7.9% of Rex Energy shares are owned by insiders. Comparatively, 0.7% of Energy XXI Gulf Coast shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Rex Energy has a beta of 1.91, indicating that its share price is 91% more volatile than the S&P 500. Comparatively, Energy XXI Gulf Coast has a beta of 3.53, indicating that its share price is 253% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Rex Energy and Energy XXI Gulf Coast, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rex Energy 0 4 0 0 2.00
Energy XXI Gulf Coast 0 0 0 0 N/A

Rex Energy currently has a consensus target price of $1.79, indicating a potential upside of 240.82%. Given Rex Energy’s higher probable upside, research analysts plainly believe Rex Energy is more favorable than Energy XXI Gulf Coast.

Earnings and Valuation

This table compares Rex Energy and Energy XXI Gulf Coast’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Rex Energy $139.02 million 0.04 -$176.71 million ($4.90) -0.11
Energy XXI Gulf Coast $511.64 million 0.58 -$341.01 million ($4.59) -1.93

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

Summary

Rex Energy beats Energy XXI Gulf Coast on 7 of the 12 factors compared between the two stocks.

About Rex Energy

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.

About Energy XXI Gulf Coast

Energy XXI Gulf Coast, Inc., an exploration and production company, engages in the acquisition, development, exploitation, and operation of oil and natural gas properties in the United States Gulf Coast region. It primarily operates properties offshore on the Gulf of Mexico Shelf, as well as onshore in Louisiana and Texas. As of December 31, 2017, the company had total proved reserves of 88.2 million barrel of oil equivalent; and operated or had an interest in 577 gross producing wells on 421,974 net developed acres, including interests in 55 producing fields. Energy XXI Gulf Coast, Inc. was incorporated in 2006 and is headquartered in Houston, Texas.

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