Critical Analysis: Callon Petroleum (NYSE:CPE) vs. Rex Energy (NYSE:REXX)

Callon Petroleum (NYSE:CPE) and Rex Energy (NASDAQ:REXX) are both oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, risk, valuation, analyst recommendations, profitability, institutional ownership and earnings.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Callon Petroleum and Rex Energy, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Callon Petroleum 0 2 18 0 2.90
Rex Energy 0 0 0 0 N/A

Callon Petroleum presently has a consensus target price of $12.81, indicating a potential upside of 90.95%. Rex Energy has a consensus target price of $0.05, indicating a potential downside of 90.48%. Given Callon Petroleum’s higher possible upside, equities research analysts plainly believe Callon Petroleum is more favorable than Rex Energy.

Profitability

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

Net Margins Return on Equity Return on Assets
Callon Petroleum 36.70% 7.55% 4.65%
Rex Energy N/A N/A N/A

Earnings and Valuation

This table compares Callon Petroleum and Rex Energy’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Callon Petroleum $587.62 million 2.60 $300.36 million $0.82 8.18
Rex Energy N/A N/A N/A N/A N/A

Callon Petroleum has higher revenue and earnings than Rex Energy.

Institutional & Insider Ownership

10.3% of Rex Energy shares are held by institutional investors. 0.6% of Callon Petroleum shares are held by company insiders. Comparatively, 7.9% of Rex Energy shares are held 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.

Summary

Callon Petroleum beats Rex Energy on 6 of the 8 factors compared between the two stocks.

About Callon Petroleum

Callon Petroleum Company, an independent oil and natural gas company, focuses on the acquisition, development, exploration, and exploitation of unconventional onshore oil and natural gas reserves in the Permian Basin in West Texas and southeastern New Mexico. As of December 31, 2018, its estimated net proved reserves totaled 238.5 million barrel of oil equivalent, including 180.1 MMBbls of oil and 350.5 Bcf of natural gas. The company was founded in 1950 and is headquartered in Houston, Texas.

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.

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