Comparing APA (NASDAQ:APA) & Granite Ridge Resources (NYSE:GRNT)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Granite Ridge Resources	8.38%	12.12%	7.10%
APA	15.49%	19.86%	7.16%

Valuation and Earnings

This table compares Granite Ridge Resources and APA”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Granite Ridge Resources	$380.03 million	1.52	$18.76 million	$0.28	15.70
APA	$9.74 billion	0.87	$804.00 million	$4.16	5.74

APA has higher revenue and earnings than Granite Ridge Resources. APA 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 Recommendations

This is a summary of recent recommendations for Granite Ridge Resources and APA, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Granite Ridge Resources	1	2	1	0	2.00
APA	3	16	6	0	2.12

Granite Ridge Resources currently has a consensus price target of $8.00, indicating a potential upside of 82.03%. APA has a consensus price target of $26.64, indicating a potential upside of 11.52%. Given Granite Ridge Resources’ higher possible upside, research analysts plainly believe Granite Ridge Resources is more favorable than APA.

Institutional & Insider Ownership

31.6% of Granite Ridge Resources shares are owned by institutional investors. Comparatively, 83.0% of APA shares are owned by institutional investors. 8.5% of Granite Ridge Resources shares are owned by company insiders. Comparatively, 1.3% of APA shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Dividends

Granite Ridge Resources pays an annual dividend of $0.44 per share and has a dividend yield of 10.0%. APA pays an annual dividend of $1.00 per share and has a dividend yield of 4.2%. Granite Ridge Resources pays out 157.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. APA pays out 24.0% of its earnings in the form of a dividend.

Volatility and Risk

Granite Ridge Resources has a beta of 0.34, suggesting that its stock price is 66% less volatile than the S&P 500. Comparatively, APA has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500.

Summary

APA beats Granite Ridge Resources on 11 of the 16 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 APA

APA Corporation, an independent energy company, explores for, develops, and produces natural gas, crude oil, and natural gas liquids. It has oil and gas operations in the United States, Egypt, and North Sea. The company also has exploration and appraisal activities in Suriname, as well as holds interests in projects located in Uruguay and internationally. APA Corporation was incorporated in 1954 and is headquartered in Houston, Texas.