Kosmos Energy (NYSE: KOS) and RSP Permian (NYSE:RSPP) are both mid-cap oils/energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, profitability, earnings, institutional ownership, analyst recommendations and risk.
This is a breakdown of current ratings and price targets for Kosmos Energy and RSP Permian, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Kosmos Energy currently has a consensus target price of $8.83, indicating a potential upside of 29.33%. RSP Permian has a consensus target price of $46.39, indicating a potential upside of 43.35%. Given RSP Permian’s stronger consensus rating and higher possible upside, analysts clearly believe RSP Permian is more favorable than Kosmos Energy.
Insider and Institutional Ownership
77.4% of RSP Permian shares are held by institutional investors. 3.8% of Kosmos Energy shares are held by company insiders. Comparatively, 15.0% of RSP Permian shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
This table compares Kosmos Energy and RSP Permian’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility and Risk
Kosmos Energy has a beta of 1.57, suggesting that its share price is 57% more volatile than the S&P 500. Comparatively, RSP Permian has a beta of 2.13, suggesting that its share price is 113% more volatile than the S&P 500.
Earnings & Valuation
This table compares Kosmos Energy and RSP Permian’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Kosmos Energy||$442.54 million||5.98||$42.91 million||($0.39)||-17.51|
|RSP Permian||$569.59 million||9.01||$412.26 million||$0.48||67.42|
RSP Permian has higher revenue and earnings than Kosmos Energy. Kosmos Energy is trading at a lower price-to-earnings ratio than RSP Permian, indicating that it is currently the more affordable of the two stocks.
RSP Permian beats Kosmos Energy on 14 of the 14 factors compared between the two stocks.
About Kosmos Energy
Kosmos Energy Ltd. (Kosmos) is an independent oil and gas exploration and production company. The Company is focused on the emerging areas along the Atlantic Margins. Its assets include existing production and development projects offshore Ghana, discoveries and further exploration potential offshore Mauritania and Senegal, as well as exploration licenses with hydrocarbon potential offshore Sao Tome and Principe, Suriname, Morocco and Western Sahara. The Company has operations in Africa and South America. The West Cape Three Points (WCTP) Block and Deepwater Tano (DT) Block are located within the Tano Basin, offshore Ghana. The Tano Basin represents the eastern extension of the Deep Ivorian Basin, which resulted from the development of an extensional sedimentary basin caused by tensional forces associated with opening of the Atlantic Ocean, as South America separated from Africa in the Mid-Cretaceous period.
About RSP Permian
RSP Permian, Inc. is an independent oil and natural gas company. The Company is engaged in the acquisition, exploration, development and production of unconventional oil and associated liquids-rich natural gas reserves in the Permian Basin of West Texas. The Company’s properties are located on contiguous acreage blocks in the Midland Basin, and the Delaware Basin, both sub-basins of the Permian Basin. The Midland Basin properties are primarily in the adjacent counties of Midland, Martin, Andrews, Ector, Glasscock and Dawson. The Delaware Basin properties are in Loving and Winkler counties. The Company has drilled Lower Spraberry horizontal well and a Middle Spraberry horizontal well in the Permian Basin. In addition, it has also drilled a Wolfcamp B horizontal well in the North Midland Basin.
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