Contrasting Permian Resources (NYSE:PR) and Northern Oil and Gas (NYSE:NOG)

Permian Resources (NYSE:PR) and Northern Oil and Gas (NYSE:NOG) are both energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, profitability, risk, earnings, institutional ownership, analyst recommendations and dividends.

Volatility and Risk

Permian Resources has a beta of 0.66, meaning that its stock price is 34% less volatile than the S&P 500. Comparatively, Northern Oil and Gas has a beta of 0.98, meaning that its stock price is 2% less volatile than the S&P 500.

Profitability

This table compares Permian Resources and Northern Oil and Gas’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Permian Resources	15.65%	11.03%	6.98%
Northern Oil and Gas	7.61%	20.61%	8.60%

Earnings & Valuation

This table compares Permian Resources and Northern Oil and Gas”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Permian Resources	$5.00 billion	2.45	$984.70 million	$1.09	13.56
Northern Oil and Gas	$2.23 billion	1.03	$520.31 million	$1.77	13.24

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

Analyst Recommendations

This is a summary of recent ratings and target prices for Permian Resources and Northern Oil and Gas, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Permian Resources	2	2	11	2	2.76
Northern Oil and Gas	1	5	3	1	2.40

Permian Resources presently has a consensus price target of $18.79, indicating a potential upside of 27.15%. Northern Oil and Gas has a consensus price target of $29.29, indicating a potential upside of 25.01%. Given Permian Resources’ stronger consensus rating and higher possible upside, analysts clearly believe Permian Resources is more favorable than Northern Oil and Gas.

Dividends

Permian Resources pays an annual dividend of $0.60 per share and has a dividend yield of 4.1%. Northern Oil and Gas pays an annual dividend of $1.80 per share and has a dividend yield of 7.7%. Permian Resources pays out 55.0% of its earnings in the form of a dividend. Northern Oil and Gas pays out 101.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Permian Resources has raised its dividend for 1 consecutive years and Northern Oil and Gas has raised its dividend for 4 consecutive years. Northern Oil and Gas is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

91.8% of Permian Resources shares are owned by institutional investors. Comparatively, 98.8% of Northern Oil and Gas shares are owned by institutional investors. 12.8% of Permian Resources shares are owned by company insiders. Comparatively, 2.9% of Northern Oil and Gas shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Permian Resources beats Northern Oil and Gas on 11 of the 18 factors compared between the two stocks.

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.

About Northern Oil and Gas

Northern Oil and Gas, Inc., an independent energy company, engages in the acquisition, exploration, exploitation, development, and production of crude oil and natural gas properties in the United States. It primarily holds interests in the Williston Basin, the Appalachian Basin, and the Permian Basin in the United States. The company is based in Minnetonka, Minnesota.