Head-To-Head Analysis: Blue Dolphin Energy (OTCMKTS:BDCO) and Range Resources (NYSE:RRC)

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

Institutional and Insider Ownership

98.9% of Range Resources shares are held by institutional investors. 88.3% of Blue Dolphin Energy shares are held by company insiders. Comparatively, 1.0% of Range Resources shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations for Blue Dolphin Energy and Range Resources, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Blue Dolphin Energy	0	0	0	0	0.00
Range Resources	1	13	8	0	2.32

Range Resources has a consensus target price of $42.05, suggesting a potential upside of 13.27%. Given Range Resources’ stronger consensus rating and higher probable upside, analysts clearly believe Range Resources is more favorable than Blue Dolphin Energy.

Volatility and Risk

Blue Dolphin Energy has a beta of 0.35, indicating that its stock price is 65% less volatile than the S&P 500. Comparatively, Range Resources has a beta of 0.51, indicating that its stock price is 49% less volatile than the S&P 500.

Earnings and Valuation

This table compares Blue Dolphin Energy and Range Resources”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Blue Dolphin Energy	$317.52 million	0.07	-$8.64 million	($0.57)	-2.47
Range Resources	$2.42 billion	3.66	$266.34 million	$1.99	18.65

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Blue Dolphin Energy	-2.82%	-24.22%	-7.98%
Range Resources	17.22%	15.95%	8.71%

Summary

Range Resources beats Blue Dolphin Energy on 13 of the 14 factors compared between the two stocks.

About Blue Dolphin Energy

Blue Dolphin Energy Company, an independent downstream energy company, engages in the refining and marketing of petroleum products in the United States. It operates through two segments, Refinery Operations, and Tolling and Terminaling. The company produces finished products, including jet fuel, as well as various intermediate products, such as naphtha, heavy oil mud blendstock, and atmospheric gas oil; and conducts tolling and terminaling services at the Nixon facility. It also provides storage tank rentals and ancillary services. The company was incorporated in 1986 and is headquartered in Houston, Texas. Blue Dolphin Energy Company is a subsidiary of Lazarus Energy Holdings, LLC.

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.