Permian Resources (NYSE:PR – Get Free Report) and W&T Offshore (NYSE:WTI – Get Free Report) are both energy companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, earnings, valuation, profitability and analyst recommendations.
Valuation and Earnings
This table compares Permian Resources and W&T Offshore”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Permian Resources | $5.19 billion | 2.24 | $984.70 million | $1.09 | 12.89 |
| W&T Offshore | $525.26 million | 0.46 | -$87.14 million | ($0.99) | -1.65 |
Risk and Volatility
Permian Resources has a beta of 0.66, indicating that its stock price is 34% less volatile than the S&P 500. Comparatively, W&T Offshore has a beta of 0.32, indicating that its stock price is 68% less volatile than the S&P 500.
Dividends
Permian Resources pays an annual dividend of $0.60 per share and has a dividend yield of 4.3%. W&T Offshore pays an annual dividend of $0.04 per share and has a dividend yield of 2.4%. Permian Resources pays out 55.0% of its earnings in the form of a dividend. W&T Offshore pays out -4.0% 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. Permian Resources has raised its dividend for 1 consecutive years. Permian Resources is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Permian Resources and W&T Offshore, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Permian Resources | 1 | 1 | 13 | 2 | 2.94 |
| W&T Offshore | 1 | 0 | 1 | 0 | 2.00 |
Permian Resources currently has a consensus target price of $19.07, indicating a potential upside of 35.66%. Given Permian Resources’ stronger consensus rating and higher probable upside, equities analysts plainly believe Permian Resources is more favorable than W&T Offshore.
Insider and Institutional Ownership
91.8% of Permian Resources shares are owned by institutional investors. Comparatively, 42.9% of W&T Offshore shares are owned by institutional investors. 6.4% of Permian Resources shares are owned by company insiders. Comparatively, 33.6% of W&T Offshore shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares Permian Resources and W&T Offshore’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Permian Resources | 15.65% | 11.03% | 6.98% |
| W&T Offshore | -29.25% | N/A | -6.26% |
Summary
Permian Resources beats W&T Offshore on 16 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 W&T Offshore
W&T Offshore, Inc. engages in the production, exploration, development, and acquisition of oil and natural gas properties. It focuses its operations in the Gulf of Mexico. The company was founded by Tracy W. Krohn in 1983 and is headquartered in Houston, TX.
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