Granite Ridge Resources (NYSE:GRNT – Get Free Report) and Mplx (NYSE:MPLX – Get Free Report) are both energy companies, but which is the better business? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, profitability, institutional ownership, dividends and valuation.
Profitability
This table compares Granite Ridge Resources and Mplx’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Granite Ridge Resources | -5.56% | 4.67% | 2.33% |
| Mplx | 35.75% | 32.83% | 10.98% |
Insider & Institutional Ownership
31.6% of Granite Ridge Resources shares are held by institutional investors. Comparatively, 24.2% of Mplx shares are held by institutional investors. 8.6% of Granite Ridge Resources shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Granite Ridge Resources | 1 | 1 | 2 | 1 | 2.60 |
| Mplx | 0 | 7 | 6 | 1 | 2.57 |
Granite Ridge Resources presently has a consensus price target of $10.00, indicating a potential upside of 124.97%. Mplx has a consensus price target of $63.80, indicating a potential upside of 11.99%. Given Granite Ridge Resources’ stronger consensus rating and higher possible upside, equities analysts plainly believe Granite Ridge Resources is more favorable than Mplx.
Dividends
Granite Ridge Resources pays an annual dividend of $0.44 per share and has a dividend yield of 9.9%. Mplx pays an annual dividend of $4.31 per share and has a dividend yield of 7.6%. Granite Ridge Resources pays out -209.5% of its earnings in the form of a dividend. Mplx pays out 92.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Mplx has raised its dividend for 9 consecutive years. Granite Ridge Resources is clearly the better dividend stock, given its higher yield and lower payout ratio.
Valuation and Earnings
This table compares Granite Ridge Resources and Mplx”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Granite Ridge Resources | $450.31 million | 1.30 | $24.35 million | ($0.21) | -21.17 |
| Mplx | $13.00 billion | 4.44 | $4.91 billion | $4.65 | 12.25 |
Mplx has higher revenue and earnings than Granite Ridge Resources. Granite Ridge Resources is trading at a lower price-to-earnings ratio than Mplx, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Granite Ridge Resources has a beta of 0.21, meaning that its stock price is 79% less volatile than the S&P 500. Comparatively, Mplx has a beta of 0.48, meaning that its stock price is 52% less volatile than the S&P 500.
Summary
Mplx beats Granite Ridge Resources on 11 of the 17 factors compared between the two stocks.
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.
About Mplx
MPLX LP engages in the operation of midstream energy infrastructure and logistics assets, and distribution fuels services. It operates through the Crude Oil and Products Logistics and Natural Gas and NGL Services segments. The Crude Oil and Products Logistics segment transports, stores, distributes, and markets crude oil, asphalt, refined petroleum products, and water. The Natural Gas and NGL Services segment gathers, processes, and transports natural gas, and gathers, transports, fractionates, stores, and markets natural gas liquids (NGLs). The company was founded on March 27, 2012 and is headquartered in Findlay, OH.
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