Permian Resources (NYSE:PR – Get Free Report) and PrimeEnergy Resources (NASDAQ:PNRG – Get Free Report) are both oils/energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, valuation, earnings, analyst recommendations, profitability and risk.
Profitability
This table compares Permian Resources and PrimeEnergy Resources’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Permian Resources | 15.62% | 11.91% | 7.45% |
PrimeEnergy Resources | 26.67% | 28.34% | 15.76% |
Valuation & Earnings
This table compares Permian Resources and PrimeEnergy Resources”s top-line revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Permian Resources | $3.12 billion | 3.55 | $476.31 million | $1.10 | 12.55 |
PrimeEnergy Resources | $178.34 million | 1.44 | $28.10 million | $14.64 | 9.84 |
Institutional & Insider Ownership
91.8% of Permian Resources shares are held by institutional investors. 12.8% of Permian Resources shares are held by company insiders. Comparatively, 61.1% of PrimeEnergy Resources shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of recent ratings for Permian Resources and PrimeEnergy Resources, as reported by MarketBeat.com.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Permian Resources | 0 | 2 | 13 | 1 | 2.94 |
PrimeEnergy Resources | 0 | 0 | 0 | 0 | N/A |
Permian Resources currently has a consensus target price of $19.20, indicating a potential upside of 39.03%. Given Permian Resources’ higher possible upside, research analysts clearly believe Permian Resources is more favorable than PrimeEnergy Resources.
Risk & Volatility
Permian Resources has a beta of 4.33, meaning that its share price is 333% more volatile than the S&P 500. Comparatively, PrimeEnergy Resources has a beta of 0.55, meaning that its share price is 45% less volatile than the S&P 500.
Summary
Permian Resources beats PrimeEnergy Resources on 9 of the 14 factors compared between the two stocks.
About Permian Resources
Permian Resources Corporation, an independent oil and natural gas company, focuses on the development of crude oil and related liquids-rich natural gas reserves in the United States. The company’s assets primarily focus on the Delaware Basin, a sub-basin of the Permian Basin. Its properties consist of acreage blocks in West Texas, Eddy County, Lea County, and New Mexico. The company was formerly known as Centennial Resource Development, Inc. and changed its name to Permian Resources Corporation in September 2022. Permian Resources Corporation was incorporated in 2015 and is headquartered in Midland, Texas.
About PrimeEnergy Resources
PrimeEnergy Resources Corporation, through its subsidiaries, engages in acquisition, development, and production of oil and natural gas properties in the United States. The company owns leasehold, mineral, and royalty interests in producing and non-producing oil and gas properties; and operates approximately 534 active wells and owns non-operating interests and royalties in 952 additional wells. It also acquires producing oil and gas properties through joint ventures with industry partners; and provides contract services to third parties, including well-servicing support, site-preparation, and construction services for oil and gas drilling and reworking operations. The company was formerly known as PrimeEnergy Corporation and changed its name to PrimeEnergy Resources Corporation in December 2018. PrimeEnergy Resources Corporation was incorporated in 1973 and is headquartered in Houston, Texas.
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