Critical Contrast: DHT (NYSE:DHT) vs. Permian Resources (NYSE:PR)

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

Analyst Recommendations

This is a breakdown of recent ratings for DHT and Permian Resources, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DHT	0	2	3	0	2.60
Permian Resources	0	2	14	6	3.18

DHT presently has a consensus target price of $21.00, indicating a potential downside of 15.68%. Permian Resources has a consensus target price of $24.83, indicating a potential upside of 8.61%. Given Permian Resources’ stronger consensus rating and higher possible upside, analysts plainly believe Permian Resources is more favorable than DHT.

Risk & Volatility

DHT has a beta of -0.03, meaning that its share price is 103% less volatile than the S&P 500. Comparatively, Permian Resources has a beta of 0.66, meaning that its share price is 34% less volatile than the S&P 500.

Insider and Institutional Ownership

58.5% of DHT shares are held by institutional investors. Comparatively, 91.8% of Permian Resources shares are held by institutional investors. 1.6% of DHT shares are held by company insiders. Comparatively, 5.0% of Permian Resources shares are held 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

DHT pays an annual dividend of $4.88 per share and has a dividend yield of 19.6%. Permian Resources pays an annual dividend of $0.64 per share and has a dividend yield of 2.8%. DHT pays out 166.0% 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 pays out 42.4% of its earnings in the form of a dividend. Permian Resources has raised its dividend for 1 consecutive years.

Profitability

This table compares DHT and Permian Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DHT	65.52%	39.40%	28.63%
Permian Resources	21.52%	13.47%	8.66%

Valuation and Earnings

This table compares DHT and Permian Resources”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DHT	$498.40 million	8.05	$211.09 million	$2.94	8.47
Permian Resources	$5.07 billion	3.78	$935.17 million	$1.51	15.14

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

Summary

Permian Resources beats DHT on 12 of the 18 factors compared between the two stocks.

About DHT

DHT Holdings, Inc., through its subsidiaries, owns and operates crude oil tankers primarily in Monaco, Singapore, and Norway. The company also offers technical management services. As of March 15, 2024, it had a fleet of 24 very large crude carriers. The company was incorporated in 2005 and is headquartered in Hamilton, Bermuda.

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.