Contrasting Range Resources (NYSE:RRC) and Zion Oil & Gas (OTCMKTS:ZNOG)

Range Resources (NYSE:RRC) and Zion Oil & Gas (OTCMKTS:ZNOG) are both energy companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, risk, analyst recommendations, earnings, dividends, profitability and institutional ownership.

Profitability

This table compares Range Resources and Zion Oil & Gas’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Range Resources	17.22%	15.95%	8.71%
Zion Oil & Gas	N/A	-25.71%	-22.95%

Risk and Volatility

Range Resources has a beta of 0.6, meaning that its stock price is 40% less volatile than the S&P 500. Comparatively, Zion Oil & Gas has a beta of 1.49, meaning that its stock price is 49% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Range Resources and Zion Oil & Gas, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Range Resources	1	11	7	1	2.40
Zion Oil & Gas	0	0	0	0	0.00

Range Resources currently has a consensus price target of $43.3684, indicating a potential upside of 25.56%. Given Range Resources’ stronger consensus rating and higher possible upside, research analysts clearly believe Range Resources is more favorable than Zion Oil & Gas.

Insider & Institutional Ownership

98.9% of Range Resources shares are owned by institutional investors. Comparatively, 7.9% of Zion Oil & Gas shares are owned by institutional investors. 1.0% of Range Resources shares are owned by company insiders. Comparatively, 2.7% of Zion Oil & Gas shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Range Resources and Zion Oil & Gas”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Range Resources	$2.42 billion	3.40	$266.34 million	$1.99	17.36
Zion Oil & Gas	N/A	N/A	-$7.34 million	N/A	N/A

Range Resources has higher revenue and earnings than Zion Oil & Gas.

Summary

Range Resources beats Zion Oil & Gas on 10 of the 12 factors compared between the two stocks.

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.

About Zion Oil & Gas

Zion Oil & Gas, Inc., together with its subsidiaries, operates as an oil and gas exploration company in Israel. It holds a petroleum exploration license onshore Israel, the New Megiddo License 434 comprising an area of approximately 75,000 acres. The company was incorporated in 2000 and is headquartered in Dallas, Texas.