Parsley Energy (NYSE: PE) and Rosehill Resources (NASDAQ:ROSE) are both energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, profitability, earnings, analyst recommendations, valuation and institutional ownership.
Earnings & Valuation
This table compares Parsley Energy and Rosehill Resources’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Parsley Energy||$967.04 million||8.79||$106.77 million||$0.25||107.28|
|Rosehill Resources||N/A||N/A||-$1.43 million||($0.96)||-6.68|
Insider & Institutional Ownership
82.6% of Parsley Energy shares are held by institutional investors. Comparatively, 5.9% of Rosehill Resources shares are held by institutional investors. 15.5% of Parsley Energy shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
This table compares Parsley Energy and Rosehill Resources’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current ratings and recommmendations for Parsley Energy and Rosehill Resources, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Parsley Energy presently has a consensus price target of $36.17, suggesting a potential upside of 34.88%. Rosehill Resources has a consensus price target of $11.83, suggesting a potential upside of 84.61%. Given Rosehill Resources’ stronger consensus rating and higher possible upside, analysts plainly believe Rosehill Resources is more favorable than Parsley Energy.
Parsley Energy beats Rosehill Resources on 9 of the 12 factors compared between the two stocks.
About Parsley Energy
Parsley Energy, Inc. is a holding company. The Company is an independent oil and natural gas company. The Company focuses on the acquisition, development and exploitation of unconventional oil and natural gas reserves in the Permian Basin. The Permian Basin is located in West Texas and Southeastern New Mexico and includes three primary sub-areas: the Midland Basin, the Central Basin Platform and the Delaware Basin. The Company’s properties are primarily located in the Midland and Delaware Basins, where it focuses on horizontal development drilling and target various stacked pay intervals in the Spraberry, Wolfcamp, Upper Pennsylvanian (Cline) and Atoka shales. As of December 31, 2016, it had an average working interest of 87% in 166 gross (146.7 net) horizontal wells, of which 151 gross (132.4 net) are in the Midland Basin. As of December 31, 2016, the Company operated seven horizontal rigs and three vertical drilling rigs.
About Rosehill Resources
Rosehill Resources Inc., formerly KLR Energy Acquisition Corp., is an oil and gas exploration company. The Company is focused on the Delaware Basin portion of the Permian Basin. It has nearly 5,000 net acres with approximately 80% held by production and drilling locations. Its drilling locations are located across ten distinct benches.
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