Critical Review: VOC Energy Trust (NYSE:VOC) and Range Resources (NYSE:RRC)

VOC Energy Trust (NYSE:VOC) and Range Resources (NYSE:RRC) are both energy companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, risk, institutional ownership, valuation, dividends and profitability.

Institutional & Insider Ownership

98.9% of Range Resources shares are owned by institutional investors. 1.0% of Range Resources shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Dividends

VOC Energy Trust pays an annual dividend of $0.52 per share and has a dividend yield of 15.8%. Range Resources pays an annual dividend of $0.36 per share and has a dividend yield of 1.0%. VOC Energy Trust pays out 82.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Range Resources pays out 18.1% of its earnings in the form of a dividend. Range Resources has raised its dividend for 1 consecutive years.

Earnings and Valuation

This table compares VOC Energy Trust and Range Resources”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
VOC Energy Trust	$13.62 million	4.11	$12.41 million	$0.63	5.23
Range Resources	$2.42 billion	3.49	$266.34 million	$1.99	17.77

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

Risk & Volatility

VOC Energy Trust has a beta of 0.12, suggesting that its stock price is 88% less volatile than the S&P 500. Comparatively, Range Resources has a beta of 0.63, suggesting that its stock price is 37% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for VOC Energy Trust and Range Resources, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
VOC Energy Trust	0	0	0	0	0.00
Range Resources	1	11	7	1	2.40

Range Resources has a consensus target price of $43.11, indicating a potential upside of 21.88%. Given Range Resources’ stronger consensus rating and higher probable upside, analysts clearly believe Range Resources is more favorable than VOC Energy Trust.

Profitability

This table compares VOC Energy Trust and Range Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
VOC Energy Trust	89.14%	87.82%	87.82%
Range Resources	17.22%	15.95%	8.71%

Summary

Range Resources beats VOC Energy Trust on 13 of the 18 factors compared between the two stocks.

About VOC Energy Trust

VOC Energy Trust acquires and holds a term net profits interest of the net proceeds from production and sale of the interests in oil and natural gas properties in the states of Kansas and Texas. The company has an 80% term net profits interest of the net proceeds on the underlying properties. As of December 31, 2021, its underlying properties had interests in 452.5 net producing wells and 51,147.2 net acres. VOC Energy Trust was incorporated in 2010 and is based 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.