Financial Comparison: Allied Resources (OTCMKTS:ALOD) versus Range Resources (NYSE:RRC)

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

Risk and Volatility

Allied Resources has a beta of 0.58, suggesting that its share price is 42% less volatile than the S&P 500. Comparatively, Range Resources has a beta of 0.46, suggesting that its share price is 54% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Allied Resources and Range Resources, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allied Resources	0	0	0	0	0.00
Range Resources	1	13	4	2	2.35

Range Resources has a consensus price target of $43.41, indicating a potential upside of 5.25%. Given Range Resources’ stronger consensus rating and higher possible upside, analysts clearly believe Range Resources is more favorable than Allied Resources.

Valuation and Earnings

This table compares Allied Resources and Range Resources”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Allied Resources	$2.25 million	0.63	$1.73 million	$0.31	0.80
Range Resources	$3.21 billion	3.03	$658.02 million	$3.78	10.91

Range Resources has higher revenue and earnings than Allied Resources. Allied Resources 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 Allied Resources and Range Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Allied Resources	76.84%	91.00%	71.45%
Range Resources	26.09%	18.64%	11.04%

Insider & Institutional Ownership

98.9% of Range Resources shares are owned by institutional investors. 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 company will outperform the market over the long term.

Summary

Range Resources beats Allied Resources on 11 of the 15 factors compared between the two stocks.

About Allied Resources

Allied Resources, Inc., an independent oil and natural gas producer, engages in the exploration, development, production, and sale of oil and gas in the United States. It owns varying interests in a total of 145 wells situated on acreage of approximately 3,400 acres in Ritchie and Calhoun counties, West Virginia; and 10 wells situated on acreage of approximately 2,510 acres in Goliad, Edwards, and Jackson counties, Texas. The company was formerly known as General Allied Oil and Gas Co and changed its name to Allied Resources, Inc. in August 1998. Allied Resources, Inc. was founded in 1979 and is based in Salt Lake City, Utah.

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.