Comparing EQT (NYSE:EQT) and Permian Resources (NYSE:PR)

Permian Resources (NYSE:PR) and EQT (NYSE:EQT) are both large-cap energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, risk and institutional ownership.

Risk & Volatility

Permian Resources has a beta of 0.66, suggesting that its share price is 34% less volatile than the S&P 500. Comparatively, EQT has a beta of 0.72, suggesting that its share price is 28% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Permian Resources	18.46%	10.83%	6.91%
EQT	23.59%	7.25%	4.63%

Valuation and Earnings

This table compares Permian Resources and EQT”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Permian Resources	$5.07 billion	3.52	$935.17 million	$1.25	17.05
EQT	$8.64 billion	4.60	$2.04 billion	$3.31	19.21

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

Insider and Institutional Ownership

91.8% of Permian Resources shares are held by institutional investors. Comparatively, 90.8% of EQT shares are held by institutional investors. 12.8% of Permian Resources shares are held by insiders. Comparatively, 0.7% of EQT shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Dividends

Permian Resources pays an annual dividend of $0.64 per share and has a dividend yield of 3.0%. EQT pays an annual dividend of $0.66 per share and has a dividend yield of 1.0%. Permian Resources pays out 51.2% of its earnings in the form of a dividend. EQT pays out 19.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Permian Resources has raised its dividend for 1 consecutive years and EQT has raised its dividend for 3 consecutive years.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Permian Resources and EQT, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Permian Resources	0	2	12	4	3.11
EQT	0	5	19	3	2.93

Permian Resources currently has a consensus target price of $21.43, indicating a potential upside of 0.56%. EQT has a consensus target price of $67.04, indicating a potential upside of 5.44%. Given EQT’s higher possible upside, analysts clearly believe EQT is more favorable than Permian Resources.

Summary

EQT beats Permian Resources 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 EQT

EQT Corporation operates as a natural gas production company in the United States. The company sells natural gas and natural gas liquids to marketers, utilities, and industrial customers through pipelines located in the Appalachian Basin. It also offers marketing services and contractual pipeline capacity management services. The company was formerly known as Equitable Resources Inc. and changed its name to EQT Corporation in February 2009. EQT Corporation was founded in 1878 and is headquartered in Pittsburgh, Pennsylvania.