Range Resources (NYSE:RRC) & Coterra Energy (NYSE:CTRA) Head to Head Comparison

Range Resources (NYSE:RRC) and Coterra Energy (NYSE:CTRA) are both oils/energy companies, but which is the better business? We will compare the two companies based on the strength of their dividends, institutional ownership, profitability, earnings, analyst recommendations, valuation and risk.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Range Resources and Coterra Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Range Resources	4	11	4	0	2.00
Coterra Energy	0	2	15	0	2.88

Range Resources presently has a consensus price target of $36.63, suggesting a potential upside of 20.02%. Coterra Energy has a consensus price target of $33.56, suggesting a potential upside of 38.75%. Given Coterra Energy’s stronger consensus rating and higher probable upside, analysts clearly believe Coterra Energy is more favorable than Range Resources.

Earnings & Valuation

This table compares Range Resources and Coterra Energy’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Range Resources	$2.33 billion	3.17	$871.14 million	$1.97	15.49
Coterra Energy	$5.66 billion	3.18	$1.63 billion	$1.73	13.98

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

	Net Margins	Return on Equity	Return on Assets
Range Resources	17.62%	13.93%	7.23%
Coterra Energy	23.18%	10.49%	6.64%

Institutional and Insider Ownership

98.9% of Range Resources shares are held by institutional investors. Comparatively, 87.9% of Coterra Energy shares are held by institutional investors. 1.6% of Range Resources shares are held by insiders. Comparatively, 1.7% of Coterra Energy shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Dividends

Range Resources pays an annual dividend of $0.32 per share and has a dividend yield of 1.0%. Coterra Energy pays an annual dividend of $0.84 per share and has a dividend yield of 3.5%. Range Resources pays out 16.2% of its earnings in the form of a dividend. Coterra Energy pays out 48.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Risk and Volatility

Range Resources has a beta of 1.88, suggesting that its stock price is 88% more volatile than the S&P 500. Comparatively, Coterra Energy has a beta of 0.24, suggesting that its stock price is 76% less volatile than the S&P 500.

Summary

Coterra Energy beats Range Resources on 9 of the 16 factors compared between the two stocks.

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.

About Coterra Energy

Coterra Energy Inc., an independent oil and gas company, engages in the development, exploration, and production of oil, natural gas, and natural gas liquids in the United States. The company's properties include the Marcellus Shale with approximately 186,000 net acres in the dry gas window of the play located in Susquehanna County, Pennsylvania; Permian Basin properties with approximately 296,000 net acres located in west Texas and southeast New Mexico; and Anadarko Basin properties with approximately 182,000 net acres located in Oklahoma. It also operates natural gas and saltwater gathering and disposal systems in Texas. The company sells its natural gas to industrial customers, local distribution companies, oil and gas marketers, major energy companies, pipeline companies, and power generation facilities. Coterra Energy Inc. was incorporated in 1989 and is headquartered in Houston, Texas.