Financial Analysis: Antero Resources (NYSE:AR) & Repsol (OTCMKTS:REPYY)

Repsol (OTCMKTS:REPYY) and Antero Resources (NYSE:AR) are both energy companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, earnings, dividends and institutional ownership.

Profitability

This table compares Repsol and Antero Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Repsol	5.41%	17.32%	8.25%
Antero Resources	5.19%	2.10%	1.09%

Volatility & Risk

Repsol has a beta of 0.75, suggesting that its share price is 25% less volatile than the S&P 500. Comparatively, Antero Resources has a beta of 3.3, suggesting that its share price is 230% more volatile than the S&P 500.

Valuation and Earnings

This table compares Repsol and Antero Resources’ revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Repsol	$63.35 billion	0.32	$3.43 billion	$2.64	6.01
Antero Resources	$4.28 billion	2.08	$242.92 million	$0.77	38.03

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

Institutional & Insider Ownership

0.3% of Repsol shares are held by institutional investors. Comparatively, 83.0% of Antero Resources shares are held by institutional investors. 1.0% of Repsol shares are held by insiders. Comparatively, 6.0% of Antero Resources shares are held by 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.

Analyst Recommendations

This is a summary of current recommendations for Repsol and Antero Resources, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Repsol	0	4	2	0	2.33
Antero Resources	0	7	5	1	2.54

Antero Resources has a consensus price target of $30.69, suggesting a potential upside of 4.82%. Given Antero Resources’ stronger consensus rating and higher probable upside, analysts clearly believe Antero Resources is more favorable than Repsol.

Summary

Antero Resources beats Repsol on 9 of the 15 factors compared between the two stocks.

About Repsol

Repsol, S.A. operates as a multi-e energy company worldwide. Its Upstream segment engages in the exploration, development, and production of crude oil and natural gas reserves, as well as develops low-carbon geological solutions. The company's Industrial segment is involved in refining activities and petrochemicals business; the trading, transport, and sale of crude oil, natural gas, and fuels; and development of hydrogen, biomethane, sustainable biofuels, and synthetic fuels. Its Customer segment is involved in mobility; and sale of fuel products, electricity and gas, lubricants, and other specialties. The company's Low-Carbon Generation segment engages in the low-emissions electricity generation and renewable sources. The company also offers asphalt products; installs, operates, and manages service stations; provides maritime services; constructs and operates oil refineries; explores and produces hydrocarbons; offers human resource; distributes and supplies electricity; and develops new energy projects, solar, and wind projects, as well as produces and sells chemical products and lubricants. In addition, it is involved in fuel and special products sale, research, trading and transport, insurance and reinsurance, safety, and financing activities; development of production processes, storage, transport, use, consumption, and transformation of hydrogen; decarbonization activities; and promotion, design, construction, and operation of molecular recycling facilities. Further, the company produces synthetic oil cloths; and invests in liquefaction plant project. The company was formerly known as Repsol YPF, S.A. and changed its name to Repsol, S.A. in May 2012. Repsol, S.A. was founded in 1927 and is headquartered in Madrid, Spain.

About Antero Resources

Antero Resources Corporation, an independent oil and natural gas company, engages in the development, production, exploration, and acquisition of natural gas, natural gas liquids (NGLs), and oil properties in the United States. It operates in three segments: Exploration and Development; Marketing; and Equity Method Investment in Antero Midstream. As of December 31, 2023, the company had approximately 515,000 net acres in the Appalachian Basin; and approximately 172,000 net acres in the Upper Devonian Shale. Its gathering and compression systems also comprise 631 miles of gas gathering pipelines in the Appalachian Basin. The company was formerly known as Antero Resources Appalachian Corporation and changed its name to Antero Resources Corporation in June 2013. Antero Resources Corporation was incorporated in 2002 and is headquartered in Denver, Colorado.