Analyzing Rosehill Resources (NASDAQ:ROSE) & CNX Resources (NASDAQ:CNX)

Rosehill Resources (NASDAQ:ROSE) and CNX Resources (NYSE:CNX) are both small-cap oils/energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, profitability, risk, earnings, analyst recommendations and valuation.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Rosehill Resources and CNX Resources, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Rosehill Resources 0 4 0 0 2.00
CNX Resources 0 1 0 0 2.00

Rosehill Resources presently has a consensus price target of $6.00, suggesting a potential upside of 1,900.00%. CNX Resources has a consensus price target of $7.11, suggesting a potential upside of 40.79%. Given Rosehill Resources’ higher possible upside, analysts plainly believe Rosehill Resources is more favorable than CNX Resources.

Insider & Institutional Ownership

11.7% of Rosehill Resources shares are held by institutional investors. Comparatively, 98.9% of CNX Resources shares are held by institutional investors. 80.3% of Rosehill Resources shares are held by insiders. Comparatively, 2.4% of CNX Resources shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Rosehill Resources and CNX Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Rosehill Resources 25.28% 25.60% 4.13%
CNX Resources -4.20% 1.00% 0.56%

Volatility and Risk

Rosehill Resources has a beta of 3.34, suggesting that its share price is 234% more volatile than the S&P 500. Comparatively, CNX Resources has a beta of 0.79, suggesting that its share price is 21% less volatile than the S&P 500.

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Rosehill Resources $301.88 million 0.04 $58.04 million $0.21 1.43
CNX Resources $1.92 billion 0.49 -$80.73 million $0.26 19.42

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

Summary

Rosehill Resources beats CNX Resources on 8 of the 12 factors compared between the two stocks.

Rosehill Resources Company Profile

Rosehill Resources Inc., an independent oil and natural gas company, focuses on the acquisition, exploration, development, and production of unconventional oil and associated liquids-rich natural gas reserves in the Permian Basin. As of December 31, 2018, its portfolio included 67 gross operated producing horizontal wells in the Northern Delaware Basin and 4 gross operated producing horizontal wells in the Southern Delaware Basin; and working interests in approximately 6,665 gross acres in the Northern Delaware Basin and 9,219 gross acres in the Southern Delaware Basin, as well as 513 gross operated and 53 non-operated potential horizontal drilling locations in the Northern and Southern Delaware Basin. The company was founded in 2015 and is headquartered in Houston, Texas. Rosehill Resources Inc. is a subsidiary of Tema Oil & Gas Company.

CNX Resources Company Profile

CNX Resources Corporation, an independent oil and gas company, explores for, develops, and produces natural gas primarily in the Appalachian Basin. The company operates through two divisions, Exploration and Production (E&P), and Midstream. The E&P division produces pipeline quality natural gas primarily to gas wholesalers. This division owns rights to extract natural gas in Pennsylvania, West Virginia, and Ohio from approximately 539,000 net Marcellus Shale acres; and 627,000 net acres of Utica Shale, as well as rights to extract natural gas from other shale and shallow oil and gas positions from approximately 968,000 in Illinois, Indiana, New York, Ohio, Pennsylvania, Virginia, and West Virginia. It also owns rights to extract coalbed methane (CBM) in Virginia from approximately 308,000 net CBM acres, as well as 210,000 net CBM acres in West Virginia, Pennsylvania, Ohio, Illinois, Indiana, and New Mexico. The Midstream division owns, operates, and develops natural gas gathering and other midstream energy assets in the Marcellus Shale and Utica Shale in Pennsylvania and West Virginia. The company also offers gas gathering and water delivery solutions to third-parties. The company was formerly known as CONSOL Energy Inc. and changed its name to CNX Resources Corporation in November 2017. CNX Resources Corporation was founded in 1860 and is headquartered in Canonsburg, Pennsylvania.

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