Reviewing Ranger Energy Services (RNGR) and RPC (RES)

Ranger Energy Services (NYSE: RNGR) and RPC (NYSE:RES) are both oils/energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, risk, earnings, valuation and analyst recommendations.

Analyst Recommendations

This is a summary of recent recommendations for Ranger Energy Services and RPC, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ranger Energy Services 0 4 4 0 2.50
RPC 1 14 4 0 2.16

Ranger Energy Services presently has a consensus price target of $16.25, indicating a potential upside of 76.63%. RPC has a consensus price target of $22.83, indicating a potential upside of 64.03%. Given Ranger Energy Services’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Ranger Energy Services is more favorable than RPC.

Valuation and Earnings

This table compares Ranger Energy Services and RPC’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ranger Energy Services $154.00 million 0.94 -$6.59 million ($0.78) -11.79
RPC $1.60 billion 1.88 $162.51 million $0.66 21.09

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

Dividends

RPC pays an annual dividend of $0.40 per share and has a dividend yield of 2.9%. Ranger Energy Services does not pay a dividend. RPC pays out 60.6% of its earnings in the form of a dividend. RPC has increased its dividend for 5 consecutive years.

Insider & Institutional Ownership

31.1% of Ranger Energy Services shares are held by institutional investors. Comparatively, 36.4% of RPC shares are held by institutional investors. 4.3% of Ranger Energy Services shares are held by company insiders. Comparatively, 73.7% of RPC shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Ranger Energy Services and RPC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ranger Energy Services -9.75% -6.16% -4.50%
RPC 12.17% 22.05% 17.11%

Summary

RPC beats Ranger Energy Services on 12 of the 15 factors compared between the two stocks.

Ranger Energy Services Company Profile

Ranger Energy Services, Inc. is an independent provider of high-specification (high-spec) well service rigs and associated services in the United States. The Company focuses on unconventional horizontal well completion and production operations. The Company operates through Well Services and Processing Solutions segment. Well Services segment provides high-spec well service rigs and complementary equipment and services in the United States, with a focus on unconventional horizontal well completion, workover and maintenance operations. Processing Solutions segment engages in the rental, installation, commissioning, start-up, operation and maintenance of MRUs, NGL stabilizer units, NGL storage units and related equipment. The Company also offers full transportation, turn-key mobilization services, installation and ongoing operation services in the field. The Company’s turn-key mobilization services include in-bound transportation and site offloading.

RPC Company Profile

RPC, Inc. provides a range of oilfield services and equipment for the oil and gas companies involved in the exploration, production, and development of oil and gas properties. The company operates through Technical Services and Support Services segments. The Technical Services offers pressure pumping, fracturing, acidizing, downhole tools, coiled tubing, snubbing, nitrogen, well control, wireline, pump down, and fishing services that are used in the completion, production, and maintenance of oil and gas wells. The Support Services segment provides a range of rental tools, including blowout preventors, high pressure manifolds and valves, hevi-wate drill pipes, tubing products, production related rental tools, pumps, diverters, drill pipes, drill collars, handling tools, Coflexip hoses, and Wear Knot drill pipes that are used for onshore and offshore oil and gas well drilling, completion, and workover activities. This segment also offers oilfield pipe inspection, and pipe management and storage services; and oilfield training and consulting services. It operates in the United States, Africa, Canada, Argentina, China, Mexico, Eastern Europe, Latin America, the Middle East, and internationally. RPC, Inc. was founded in 1984 and is headquartered in Atlanta, Georgia.

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