Financial Survey: Northern Oil and Gas (NYSE:NOG) vs. Permian Resources (NYSE:PR)

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Northern Oil and Gas	$2.19 billion	0.97	$520.31 million	$1.77	12.34
Permian Resources	$5.00 billion	2.33	$984.70 million	$1.09	12.89

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.

Profitability

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

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Northern Oil and Gas and Permian Resources, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Northern Oil and Gas	1	5	4	1	2.45
Permian Resources	1	1	13	2	2.94

Northern Oil and Gas currently has a consensus price target of $33.25, indicating a potential upside of 52.28%. Permian Resources has a consensus price target of $19.07, indicating a potential upside of 35.66%. Given Northern Oil and Gas’ higher probable upside, research analysts plainly believe Northern Oil and Gas is more favorable than Permian Resources.

Insider & Institutional Ownership

98.8% of Northern Oil and Gas shares are held by institutional investors. Comparatively, 91.8% of Permian Resources shares are held by institutional investors. 2.9% of Northern Oil and Gas shares are held by insiders. Comparatively, 6.4% of Permian Resources shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

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

Dividends

Northern Oil and Gas pays an annual dividend of $1.80 per share and has a dividend yield of 8.2%. Permian Resources pays an annual dividend of $0.60 per share and has a dividend yield of 4.3%. 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 pays out 55.0% of its earnings in the form of a dividend. Northern Oil and Gas has raised its dividend for 4 consecutive years and Permian Resources has raised its dividend for 1 consecutive years. Northern Oil and Gas is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Permian Resources beats Northern Oil and Gas on 10 of the 18 factors compared between the two stocks.

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.

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.