Financial Review: Permian Resources (NYSE:PR) vs. Geopark (NYSE:GPRK)

Permian Resources (NYSE:PR) and Geopark (NYSE:GPRK) are both energy companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.

Analyst Ratings

This is a breakdown of current recommendations for Permian Resources and Geopark, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Permian Resources	1	1	13	2	2.94
Geopark	1	0	1	0	2.00

Permian Resources presently has a consensus target price of $18.80, indicating a potential upside of 31.24%. Given Permian Resources’ stronger consensus rating and higher probable upside, analysts clearly believe Permian Resources is more favorable than Geopark.

Insider & Institutional Ownership

91.8% of Permian Resources shares are held by institutional investors. Comparatively, 68.2% of Geopark shares are held by institutional investors. 12.8% of Permian Resources shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Permian Resources and Geopark’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%
Geopark	6.45%	33.42%	6.17%

Earnings & Valuation

This table compares Permian Resources and Geopark”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Permian Resources	$5.00 billion	2.38	$984.70 million	$1.09	13.14
Geopark	$660.80 million	0.63	$96.38 million	$0.65	12.52

Permian Resources has higher revenue and earnings than Geopark. Geopark is trading at a lower price-to-earnings ratio than Permian Resources, indicating that it is currently the more affordable of the two stocks.

Dividends

Permian Resources pays an annual dividend of $0.60 per share and has a dividend yield of 4.2%. Geopark pays an annual dividend of $0.12 per share and has a dividend yield of 1.5%. Permian Resources pays out 55.0% of its earnings in the form of a dividend. Geopark pays out 18.5% 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 and Geopark has raised its dividend for 3 consecutive years.

Risk & Volatility

Permian Resources has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500. Comparatively, Geopark has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500.

Summary

Permian Resources beats Geopark on 15 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 Geopark

GeoPark Limited operates as an oil and natural gas exploration and production company primarily in Chile, Colombia, Brazil, Argentina, Ecuador, and other Latin American countries. It engages in the exploration, development, and production of oil and gas reserves. The company was formerly known as GeoPark Holdings Limited and changed its name to GeoPark Limited in July 2013. GeoPark Limited was founded in 2002 and is based in Bogotá, Colombia.