Range Resources (NYSE:RRC – Get Free Report) and Granite Ridge Resources (NYSE:GRNT – Get Free Report) are both energy companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, risk, analyst recommendations, profitability, dividends, earnings and valuation.
Profitability
This table compares Range Resources and Granite Ridge Resources’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Range Resources | 26.09% | 18.64% | 11.04% |
| Granite Ridge Resources | -7.13% | 4.99% | 2.65% |
Valuation and Earnings
This table compares Range Resources and Granite Ridge Resources”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Range Resources | $3.12 billion | 2.91 | $658.02 million | $3.78 | 10.19 |
| Granite Ridge Resources | $450.31 million | 1.44 | $24.35 million | ($0.25) | -19.66 |
Range Resources has higher revenue and earnings than Granite Ridge Resources. Granite Ridge Resources is trading at a lower price-to-earnings ratio than Range Resources, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
98.9% of Range Resources shares are owned by institutional investors. Comparatively, 31.6% of Granite Ridge Resources shares are owned by institutional investors. 1.1% of Range Resources shares are owned by company insiders. Comparatively, 8.4% of Granite Ridge Resources shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Risk and Volatility
Range Resources has a beta of 0.42, indicating that its stock price is 58% less volatile than the S&P 500. Comparatively, Granite Ridge Resources has a beta of 0.19, indicating that its stock price is 81% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of current recommendations and price targets for Range Resources and Granite Ridge Resources, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Range Resources | 1 | 14 | 4 | 1 | 2.25 |
| Granite Ridge Resources | 2 | 0 | 1 | 0 | 1.67 |
Range Resources presently has a consensus price target of $44.00, indicating a potential upside of 14.19%. Granite Ridge Resources has a consensus price target of $11.00, indicating a potential upside of 123.80%. Given Granite Ridge Resources’ higher possible upside, analysts clearly believe Granite Ridge Resources is more favorable than Range Resources.
Dividends
Range Resources pays an annual dividend of $0.40 per share and has a dividend yield of 1.0%. Granite Ridge Resources pays an annual dividend of $0.44 per share and has a dividend yield of 9.0%. Range Resources pays out 10.6% of its earnings in the form of a dividend. Granite Ridge Resources pays out -176.0% 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. Range Resources has raised its dividend for 1 consecutive years. Granite Ridge Resources is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Range Resources beats Granite Ridge Resources on 14 of the 18 factors compared between the two stocks.
About Range Resources
Range Resources Corporation operates as an independent natural gas, natural gas liquids (NGLs), crude oil, and condensate company in the United States. The company engages in the exploration, development, and acquisition of natural gas and crude oil properties located in the Appalachian region. It sells natural gas to utilities, marketing and midstream companies, and industrial users; NGLs to petrochemical end users, marketers/traders, and natural gas processors; and oil and condensate to crude oil processors, transporters, and refining and marketing companies. The company was formerly known as Lomak Petroleum Inc. and changed its name to Range Resources Corporation in August 1998. Range Resources Corporation was founded in 1976 and is headquartered in Fort Worth, Texas.
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.
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