Financial Review: Battalion Oil (NYSE:BATL) versus Range Resources (NYSE:RRC)

Battalion Oil (NYSE:BATL) and Range Resources (NYSE:RRC) are both energy companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, profitability, valuation, dividends and risk.

Risk and Volatility

Battalion Oil has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500. Comparatively, Range Resources has a beta of 1.73, suggesting that its share price is 73% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Battalion Oil	12.02%	-137.74%	-11.27%
Range Resources	17.63%	13.69%	7.21%

Analyst Ratings

This is a summary of current ratings and target prices for Battalion Oil and Range Resources, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Battalion Oil	0	0	0	0	0.00
Range Resources	1	12	7	0	2.30

Range Resources has a consensus price target of $41.60, suggesting a potential upside of 9.17%. Given Range Resources’ stronger consensus rating and higher possible upside, analysts plainly believe Range Resources is more favorable than Battalion Oil.

Institutional and Insider Ownership

86.0% of Battalion Oil shares are owned by institutional investors. Comparatively, 98.9% of Range Resources shares are owned by institutional investors. 62.0% of Battalion Oil shares are owned by insiders. Comparatively, 2.5% of Range Resources shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Battalion Oil	$191.48 million	0.11	-$3.05 million	($0.80)	-1.65
Range Resources	$2.35 billion	3.92	$871.14 million	$1.10	34.64

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

Summary

Range Resources beats Battalion Oil on 13 of the 14 factors compared between the two stocks.

About Battalion Oil

Battalion Oil Corporation, an independent energy company, engages in the acquisition, production, exploration, and development of onshore oil and natural gas assets in the United States. It holds interests in the Delaware Basin located in the counties of Pecos, Ward, Reeves, and Winkler, Texas. It serves independent marketers, and oil and natural gas and gas pipeline companies. The company was formerly known as Halcón Resources Corporation and changed its name to Battalion Oil Corporation in January 2020. Battalion Oil Corporation was founded in 1987 and is headquartered 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.