Analyzing Granite Ridge Resources (NYSE:GRNT) and Range Resources (NYSE:RRC)

Granite Ridge Resources (NYSE:GRNT) and Range Resources (NYSE:RRC) are both energy companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, earnings, risk, valuation, profitability, institutional ownership and dividends.

Risk and Volatility

Granite Ridge Resources has a beta of 0.19, suggesting that its share price is 81% less volatile than the S&P 500. Comparatively, Range Resources has a beta of 0.42, suggesting that its share price is 58% less volatile than the S&P 500.

Valuation and Earnings

This table compares Granite Ridge Resources and Range Resources”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	1.44	$24.35 million	($0.25)	-19.66
Range Resources	$3.12 billion	2.91	$658.02 million	$3.78	10.19

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 and Institutional Ownership

31.6% of Granite Ridge Resources shares are owned by institutional investors. Comparatively, 98.9% of Range Resources shares are owned by institutional investors. 8.4% of Granite Ridge Resources shares are owned by company insiders. Comparatively, 1.1% of Range Resources shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations and price targets for Granite Ridge Resources and Range Resources, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Granite Ridge Resources	2	0	1	0	1.67
Range Resources	1	14	4	1	2.25

Granite Ridge Resources currently has a consensus price target of $11.00, indicating a potential upside of 123.80%. Range Resources has a consensus price target of $44.00, indicating a potential upside of 14.19%. Given Granite Ridge Resources’ higher possible upside, equities research analysts plainly believe Granite Ridge Resources is more favorable than Range Resources.

Dividends

Granite Ridge Resources pays an annual dividend of $0.44 per share and has a dividend yield of 9.0%. Range Resources pays an annual dividend of $0.40 per share and has a dividend yield of 1.0%. Granite Ridge Resources pays out -176.0% of its earnings in the form of a dividend. Range Resources pays out 10.6% 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 increased its dividend for 1 consecutive years. Granite Ridge Resources is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares Granite Ridge Resources and Range Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Granite Ridge Resources	-7.13%	4.99%	2.65%
Range Resources	26.09%	18.64%	11.04%

Summary

Range Resources beats Granite Ridge Resources on 14 of the 18 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 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.