Contrasting Range Resources (NYSE:RRC) and ERHC Energy (OTCMKTS:ERHE)

ERHC Energy (OTCMKTS:ERHE) 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 profitability, institutional ownership, earnings, valuation, dividends, analyst recommendations and risk.

Risk and Volatility

ERHC Energy has a beta of -5.28, meaning that its stock price is 628% less volatile than the S&P 500. Comparatively, Range Resources has a beta of 0.41, meaning that its stock price is 59% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
ERHC Energy	N/A	N/A	N/A
Range Resources	25.04%	18.63%	11.23%

Earnings & Valuation

This table compares ERHC Energy and Range Resources”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ERHC Energy	N/A	N/A	N/A	N/A	N/A
Range Resources	$3.12 billion	2.84	$658.02 million	$3.62	10.45

Range Resources has higher revenue and earnings than ERHC Energy.

Institutional and Insider Ownership

98.9% of Range Resources shares are owned by institutional investors. 4.9% of ERHC Energy shares are owned by company insiders. Comparatively, 1.1% of Range Resources shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for ERHC Energy and Range Resources, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ERHC Energy	0	0	0	0	0.00
Range Resources	2	14	3	1	2.15

Range Resources has a consensus price target of $43.35, suggesting a potential upside of 14.55%. Given Range Resources’ stronger consensus rating and higher possible upside, analysts plainly believe Range Resources is more favorable than ERHC Energy.

Summary

Range Resources beats ERHC Energy on 10 of the 11 factors compared between the two stocks.

About ERHC Energy

ERHC Energy Inc. engages in the exploration and exploitation of oil and gas resources in Africa. Its principal assets include the rights to working interests in exploration acreage in the Republic of Kenya; the Republic of Chad; the Joint Development Zone between the Democratic Republic of Sao Tome and Principe; the Federal Republic of Nigeria; and the economic zone of Sao Tome. The company was founded in 1986 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.