Comparing PHX Minerals (NYSE:PHX) & EQT (NYSE:EQT)

EQT (NYSE:EQT) and PHX Minerals (NYSE:PHX) are both oils/energy companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, valuation, risk, institutional ownership, analyst recommendations, earnings and profitability.

Analyst Ratings

This is a breakdown of recent ratings for EQT and PHX Minerals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EQT	0	7	11	0	2.61
PHX Minerals	0	0	2	0	3.00

EQT currently has a consensus price target of $49.89, suggesting a potential downside of 5.75%. PHX Minerals has a consensus price target of $4.90, suggesting a potential upside of 20.84%. Given PHX Minerals’ stronger consensus rating and higher possible upside, analysts clearly believe PHX Minerals is more favorable than EQT.

Profitability

This table compares EQT and PHX Minerals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
EQT	5.52%	3.74%	2.12%
PHX Minerals	12.33%	4.16%	3.12%

Dividends

EQT pays an annual dividend of $0.63 per share and has a dividend yield of 1.2%. PHX Minerals pays an annual dividend of $0.16 per share and has a dividend yield of 3.9%. EQT pays out 75.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. PHX Minerals pays out 123.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Earnings and Valuation

This table compares EQT and PHX Minerals”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EQT	$6.91 billion	4.57	$1.74 billion	$0.84	63.02
PHX Minerals	$44.46 million	3.42	$13.92 million	$0.13	31.19

EQT has higher revenue and earnings than PHX Minerals. PHX Minerals is trading at a lower price-to-earnings ratio than EQT, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

EQT has a beta of 1.12, indicating that its share price is 12% more volatile than the S&P 500. Comparatively, PHX Minerals has a beta of 0.57, indicating that its share price is 43% less volatile than the S&P 500.

Institutional & Insider Ownership

90.8% of EQT shares are owned by institutional investors. Comparatively, 38.2% of PHX Minerals shares are owned by institutional investors. 0.6% of EQT shares are owned by company insiders. Comparatively, 6.4% of PHX Minerals shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

EQT beats PHX Minerals on 9 of the 16 factors compared between the two stocks.

About EQT

EQT Corporation operates as a natural gas production company in the United States. The company sells natural gas and natural gas liquids to marketers, utilities, and industrial customers through pipelines located in the Appalachian Basin. It also offers marketing services and contractual pipeline capacity management services. The company was formerly known as Equitable Resources Inc. and changed its name to EQT Corporation in February 2009. EQT Corporation was founded in 1878 and is headquartered in Pittsburgh, Pennsylvania.

About PHX Minerals

PHX Minerals Inc. operates as a natural gas and oil mineral company in the United States. The company produces and sells natural gas, crude oil, and natural gas liquids. Its principal properties are located in Oklahoma, Texas, Louisiana, North Dakota, and Arkansas. The company sells its products to various purchasers, including pipeline and marketing companies. The company was formerly known as Panhandle Oil and Gas Inc. and changed its name to PHX Minerals Inc. in October 2020. PHX Minerals Inc. was founded in 1926 and is headquartered in Fort Worth, Texas.