Permian Resources (NYSE:PR – Get Free Report) and TotalEnergies (NYSE:TTE – Get Free Report) are both large-cap energy companies, but which is the better business? We will compare the two companies based on the strength of their risk, analyst recommendations, institutional ownership, earnings, valuation, dividends and profitability.
Insider & Institutional Ownership
91.8% of Permian Resources shares are owned by institutional investors. Comparatively, 16.5% of TotalEnergies shares are owned by institutional investors. 5.0% of Permian Resources shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds 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 2.5%. TotalEnergies pays an annual dividend of $4.02 per share and has a dividend yield of 4.2%. Permian Resources pays out 42.4% of its earnings in the form of a dividend. TotalEnergies pays out 40.2% 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. TotalEnergies is clearly the better dividend stock, given its higher yield and lower payout ratio.
Profitability
This table compares Permian Resources and TotalEnergies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Permian Resources | 21.52% | 13.47% | 8.66% |
| TotalEnergies | 9.61% | 19.55% | 7.95% |
Valuation and Earnings
This table compares Permian Resources and TotalEnergies”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Permian Resources | $5.74 billion | 3.80 | $935.17 million | $1.51 | 17.25 |
| TotalEnergies | $214.40 billion | 1.07 | $13.13 billion | $10.01 | 9.53 |
TotalEnergies has higher revenue and earnings than Permian Resources. TotalEnergies 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 breakdown of recent ratings and target prices for Permian Resources and TotalEnergies, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Permian Resources | 0 | 2 | 15 | 5 | 3.14 |
| TotalEnergies | 1 | 6 | 10 | 1 | 2.61 |
Permian Resources presently has a consensus target price of $26.39, indicating a potential upside of 1.34%. TotalEnergies has a consensus target price of $92.71, indicating a potential downside of 2.80%. Given Permian Resources’ stronger consensus rating and higher probable upside, equities analysts plainly believe Permian Resources is more favorable than TotalEnergies.
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, TotalEnergies has a beta of 0.18, suggesting that its share price is 82% less volatile than the S&P 500.
Summary
Permian Resources beats TotalEnergies on 12 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 TotalEnergies
TotalEnergies SE, a multi-energy company, produces and markets oil and biofuels, natural gas, green gases, renewables, and electricity in France, rest of Europe, North America, Africa, and internationally. It operates through five segments: Exploration & Production, Integrated LNG, Integrated Power, Refining & Chemicals, and Marketing & Services. The Exploration & Production segment is involved in the exploration and production of oil and natural gas. The Integrated LNG segment comprises the integrated gas chain, including upstream and midstream liquified natural gas (LNG) activities, as well as biogas, hydrogen, and gas trading activities. The Integrated Power segment includes generation, storage, electricity trading, and B2B-B2C distribution of gas and electricity. The Refining & Chemicals segment consists of refining, petrochemicals, and specialty chemicals. This segment also includes oil supply, trading, and marine shipping activities. The Marketing & Services segment supplies and markets petroleum products. The company was formerly known as TOTAL SE and changed its name to TotalEnergies SE in June 2021. TotalEnergies SE was founded in 1924 and is headquartered in Courbevoie, France.
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