Head-To-Head Survey: ConocoPhillips (NYSE:COP) and PrimeEnergy (NASDAQ:PNRG)

ConocoPhillips (NYSE:COP) and PrimeEnergy (NASDAQ:PNRG) are both energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.

Institutional and Insider Ownership

82.4% of ConocoPhillips shares are owned by institutional investors. 0.1% of ConocoPhillips shares are owned by insiders. Comparatively, 65.3% of PrimeEnergy shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations for ConocoPhillips and PrimeEnergy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ConocoPhillips	2	7	17	1	2.63
PrimeEnergy	0	2	0	0	2.00

ConocoPhillips presently has a consensus target price of $140.29, suggesting a potential upside of 5.27%. Given ConocoPhillips’ stronger consensus rating and higher probable upside, equities research analysts clearly believe ConocoPhillips is more favorable than PrimeEnergy.

Earnings and Valuation

This table compares ConocoPhillips and PrimeEnergy”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ConocoPhillips	$61.55 billion	2.60	$7.99 billion	$7.56	17.63
PrimeEnergy	$189.05 million	1.78	$26.31 million	$10.38	20.55

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

Volatility & Risk

ConocoPhillips has a beta of 0.13, suggesting that its share price is 87% less volatile than the S&P 500. Comparatively, PrimeEnergy has a beta of -0.24, suggesting that its share price is 124% less volatile than the S&P 500.

Profitability

This table compares ConocoPhillips and PrimeEnergy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ConocoPhillips	14.22%	14.72%	7.77%
PrimeEnergy	13.87%	11.47%	7.67%

Summary

ConocoPhillips beats PrimeEnergy on 12 of the 15 factors compared between the two stocks.

About ConocoPhillips

ConocoPhillips explores for, produces, transports, and markets crude oil, bitumen, natural gas, liquefied natural gas (LNG), and natural gas liquids in the United States, Canada, China, Libya, Malaysia, Norway, the United Kingdom, and internationally. The company's portfolio includes unconventional plays in North America; conventional assets in North America, Europe, Asia, and Australia; global LNG developments; oil sands assets in Canada; and an inventory of global exploration prospects. ConocoPhillips was founded in 1917 and is headquartered in Houston, 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.