Reviewing Paramount Resources (OTCMKTS:PRMRF) and Mach Natural Resources (NYSE:MNR)

Paramount Resources (OTCMKTS:PRMRF) and Mach Natural Resources (NYSE:MNR) are both energy companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, valuation, earnings, profitability, analyst recommendations, dividends and risk.

Earnings and Valuation

This table compares Paramount Resources and Mach Natural Resources”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Paramount Resources	$692.73 million	4.40	$922.32 million	$0.57	36.61
Mach Natural Resources	$1.18 billion	1.46	$142.98 million	$0.59	17.43

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

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Paramount Resources and Mach Natural Resources, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Paramount Resources	0	3	4	1	2.75
Mach Natural Resources	1	3	3	2	2.67

Mach Natural Resources has a consensus target price of $16.33, suggesting a potential upside of 58.81%. Given Mach Natural Resources’ higher probable upside, analysts clearly believe Mach Natural Resources is more favorable than Paramount Resources.

Dividends

Paramount Resources pays an annual dividend of $0.43 per share and has a dividend yield of 2.1%. Mach Natural Resources pays an annual dividend of $1.44 per share and has a dividend yield of 14.0%. Paramount Resources pays out 75.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Mach Natural Resources pays out 244.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Mach Natural Resources has raised its dividend for 1 consecutive years. Mach Natural Resources is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk and Volatility

Paramount Resources has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500. Comparatively, Mach Natural Resources has a beta of -0.22, indicating that its share price is 122% less volatile than the S&P 500.

Insider and Institutional Ownership

4.1% of Paramount Resources shares are owned by institutional investors. Comparatively, 78.4% of Mach Natural Resources shares are owned by institutional investors. 36.3% of Paramount Resources shares are owned by company insiders. Comparatively, 87.8% of Mach Natural Resources shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Paramount Resources and Mach Natural Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Paramount Resources	12.52%	4.31%	3.20%
Mach Natural Resources	7.44%	16.06%	8.23%

Summary

Mach Natural Resources beats Paramount Resources on 10 of the 18 factors compared between the two stocks.

About Paramount Resources

Paramount Resources Ltd. explores for and develops conventional and unconventional petroleum and natural gas reserves and resources in Canada. The company holds interests in the Karr and Wapiti Montney properties covering an area of 109,000 net acres located south of the city of Grande Prairie, Alberta; Kaybob North Duvernay development and natural gas producing properties covering an area of 124,000 net acres located in west-central Alberta; and Willesden Green Duvernay development in central Alberta and shale gas producing properties in the Horn River Basin in northeast British Columbia covering an area of 249,000 net acres. The company was founded in 1976 and is based in Calgary, Canada.

About Mach Natural Resources

Mach Natural Resources LP, an independent upstream oil and gas company, focuses on the acquisition, development, and production of oil, natural gas, and natural gas liquids reserves in the Anadarko Basin region of Western Oklahoma, Southern Kansas, and the panhandle of Texas. It also owns a portfolio of midstream assets, as well as owns plants and water infrastructure. The company was incorporated in 2023 and is headquartered in Oklahoma City, Oklahoma.