Analyzing PrimeEnergy (NASDAQ:PNRG) and Granite Ridge Resources (NYSE:GRNT)

Granite Ridge Resources (NYSE:GRNT) and PrimeEnergy (NASDAQ:PNRG) are both small-cap energy companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, institutional ownership, risk and earnings.

Institutional & Insider Ownership

31.6% of Granite Ridge Resources shares are owned by institutional investors. 8.5% of Granite Ridge Resources shares are owned by insiders. Comparatively, 62.8% of PrimeEnergy shares are owned by 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.

Profitability

This table compares Granite Ridge Resources and PrimeEnergy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Granite Ridge Resources	5.41%	8.91%	5.01%
PrimeEnergy	12.69%	12.19%	7.53%

Earnings & Valuation

This table compares Granite Ridge Resources and PrimeEnergy”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Granite Ridge Resources	$450.31 million	1.71	$24.35 million	$0.18	32.58
PrimeEnergy	$237.80 million	1.65	$55.40 million	$10.45	23.01

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

Analyst Ratings

This is a summary of current ratings and recommmendations for Granite Ridge Resources and PrimeEnergy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Granite Ridge Resources	0	2	0	0	2.00
PrimeEnergy	0	1	0	0	2.00

Risk & Volatility

Granite Ridge Resources has a beta of 0.34, meaning that its stock price is 66% less volatile than the S&P 500. Comparatively, PrimeEnergy has a beta of -0.08, meaning that its stock price is 108% less volatile than the S&P 500.

Summary

PrimeEnergy beats Granite Ridge Resources on 6 of the 11 factors compared between the two stocks.

About Granite Ridge Resources

Granite Ridge Resources, Inc. operates as a non-operated oil and gas exploration and production company. It owns a portfolio of wells and acreage across the Permian and other unconventional basins in the United States. Granite Ridge Resources, Inc. is based in Dallas, Texas.

About PrimeEnergy

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.