Analyzing Riley Exploration Permian (NYSE:REPX) & BW LPG (NYSE:BWLP)

BW LPG (NYSE:BWLP) and Riley Exploration Permian (NYSE:REPX) are both energy companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.

Valuation & Earnings

This table compares BW LPG and Riley Exploration Permian”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BW LPG	$3.58 billion	1.07	$242.31 million	$2.94	8.59
Riley Exploration Permian	$483.86 million	2.21	$111.59 million	$5.52	8.76

BW LPG has higher revenue and earnings than Riley Exploration Permian. BW LPG is trading at a lower price-to-earnings ratio than Riley Exploration Permian, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for BW LPG and Riley Exploration Permian, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BW LPG	0	1	4	0	2.80
Riley Exploration Permian	0	1	3	0	2.75

Riley Exploration Permian has a consensus price target of $43.00, suggesting a potential downside of 11.05%. Given Riley Exploration Permian’s higher probable upside, analysts plainly believe Riley Exploration Permian is more favorable than BW LPG.

Dividends

BW LPG pays an annual dividend of $3.80 per share and has a dividend yield of 15.0%. Riley Exploration Permian pays an annual dividend of $1.68 per share and has a dividend yield of 3.5%. BW LPG pays out 129.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Riley Exploration Permian pays out 30.4% of its earnings in the form of a dividend. Riley Exploration Permian has raised its dividend for 3 consecutive years.

Profitability

This table compares BW LPG and Riley Exploration Permian’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BW LPG	12.64%	22.48%	13.50%
Riley Exploration Permian	28.48%	23.82%	11.31%

Institutional and Insider Ownership

58.9% of Riley Exploration Permian shares are held by institutional investors. 4.2% of Riley Exploration Permian shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

BW LPG has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500. Comparatively, Riley Exploration Permian has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500.

Summary

Riley Exploration Permian beats BW LPG on 10 of the 17 factors compared between the two stocks.

About BW LPG

BW LPG Limited, an investment holding company, engages in ship owning and chartering activities worldwide. The company operates through Shipping and Product Services segments. The company involved in the transportation of liquefied petroleum gas to oil companies, and trading and utility companies. It also offers integrated liquified petroleum gas (LPG) delivery services and support; wholesale and trade of LPG; and management services. It owns and operates LPG vessels and a fleet of very large gas carriers. The company was formerly known as BW Gas LPG Holding Limited and changed its name to BW LPG Limited in September 2013. BW LPG Limited was founded in 1935 and is headquartered in Singapore.

About Riley Exploration Permian

Riley Exploration Permian, Inc., an independent oil and natural gas company, engages in the acquisition, exploration, development, and production of oil, natural gas, and natural gas liquids in Texas and New Mexico. The company's activities are primarily focused on the Northwest Shelf and Yeso trend of the Permian Basin. Its acreage is primarily located on contiguous blocks in Yoakum County, Texas; and Eddy County, New Mexico. Riley Exploration Permian, Inc. is headquartered in Oklahoma City, Oklahoma.