Financial Review: Keyuan Petrochemicals (OTCMKTS:KEYP) and REX American Resources (NYSE:REX)

REX American Resources (NYSE:REX) and Keyuan Petrochemicals (OTCMKTS:KEYP) are both small-cap oils/energy companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.

Analyst Ratings

This is a summary of recent ratings and recommmendations for REX American Resources and Keyuan Petrochemicals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
REX American Resources	0	0	1	0	3.00
Keyuan Petrochemicals	0	0	0	0	0.00

REX American Resources presently has a consensus price target of $55.00, indicating a potential upside of 33.23%. Given REX American Resources’ stronger consensus rating and higher possible upside, research analysts clearly believe REX American Resources is more favorable than Keyuan Petrochemicals.

Profitability

This table compares REX American Resources and Keyuan Petrochemicals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
REX American Resources	10.07%	11.05%	9.90%
Keyuan Petrochemicals	N/A	N/A	N/A

Institutional and Insider Ownership

88.1% of REX American Resources shares are owned by institutional investors. 11.7% of REX American Resources shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares REX American Resources and Keyuan Petrochemicals”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
REX American Resources	$833.38 million	0.87	$60.94 million	$3.82	10.81
Keyuan Petrochemicals	N/A	N/A	N/A	N/A	N/A

REX American Resources has higher revenue and earnings than Keyuan Petrochemicals.

Summary

REX American Resources beats Keyuan Petrochemicals on 9 of the 9 factors compared between the two stocks.

About REX American Resources

REX American Resources Corporation, together with its subsidiaries, produces and sells ethanol in the United States. The company also offers corn, distillers grains, ethanol, distillers corn oil, gasoline, and natural gas. In addition, it provides dry distillers grains with solubles, which is used as a protein in animal feed. The company was formerly known as REX Stores Corporation and changed its name to REX American Resources Corporation in 2010. REX American Resources Corporation was founded in 1980 and is headquartered in Dayton, Ohio.

About Keyuan Petrochemicals

Keyuan Petrochemicals, Inc., through its subsidiaries, Ningbo Keyuan, Ningbo Keyuan Petrochemicals, Keyuan Synthetic Rubbers, Guangxi Keyuan and Zhongkexuneng, is engaged in the manufacture and sale of petrochemical products and rubber in the People’s Republic of China. The Company’s segments include the manufacture and sale of petrochemical products (petrochemical segment) and the manufacture and sale of rubber products (rubber segment). The Petrochemicals Segment includes the manufacturing and sales of mixed light aromatics, mixed heavy aromatics, fine propylene, propane, butane, liquefied petroleum gas (LPG), methyltert-butylether and styrene. The Rubber Segment includes the manufacturing and sales of various rubber products. It manufactures and supplies various petrochemical and rubber products, including petrochemical products, such as Benzene Toluene-Xylene Aromatics (BTX Aromatics), propylene, styrene, LPG, Methyl Tertiary Butyl Ether (MTBE) and rubber products.