Financial Review: PrimeEnergy Resources (NASDAQ:PNRG) vs. Permian Resources (NYSE:PR)

PrimeEnergy Resources (NASDAQ:PNRG) and Permian Resources (NYSE:PR) are both oils/energy companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, risk, dividends, profitability, earnings, valuation and institutional ownership.

Insider & Institutional Ownership

91.8% of Permian Resources shares are held by institutional investors. 61.1% of PrimeEnergy Resources shares are held by company insiders. Comparatively, 12.8% of Permian Resources shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings for PrimeEnergy Resources and Permian Resources, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PrimeEnergy Resources	0	0	0	0	N/A
Permian Resources	0	2	13	1	2.94

Permian Resources has a consensus target price of $19.20, suggesting a potential upside of 39.03%. Given Permian Resources’ higher probable upside, analysts plainly believe Permian Resources is more favorable than PrimeEnergy Resources.

Risk & Volatility

PrimeEnergy Resources has a beta of 0.55, meaning that its share price is 45% less volatile than the S&P 500. Comparatively, Permian Resources has a beta of 4.33, meaning that its share price is 333% more volatile than the S&P 500.

Valuation & Earnings

This table compares PrimeEnergy Resources and Permian Resources”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PrimeEnergy Resources	$178.34 million	1.44	$28.10 million	$14.64	9.84
Permian Resources	$3.12 billion	3.55	$476.31 million	$1.10	12.55

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

Profitability

This table compares PrimeEnergy Resources and Permian Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PrimeEnergy Resources	26.67%	28.34%	15.76%
Permian Resources	15.62%	11.91%	7.45%

Summary

Permian Resources beats PrimeEnergy Resources on 9 of the 14 factors compared between the two stocks.

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.

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.