APA (NASDAQ:APA) and Granite Ridge Resources (NYSE:GRNT) Head-To-Head Review

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Granite Ridge Resources	8.38%	12.12%	7.10%
APA	15.49%	19.86%	7.16%

Valuation & Earnings

This table compares Granite Ridge Resources and APA”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Granite Ridge Resources	$380.03 million	1.61	$18.76 million	$0.28	16.68
APA	$9.74 billion	0.92	$804.00 million	$4.16	6.10

APA has higher revenue and earnings than Granite Ridge Resources. APA is trading at a lower price-to-earnings ratio than Granite Ridge 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, 83.0% of APA shares are owned by institutional investors. 8.5% of Granite Ridge Resources shares are owned by company insiders. Comparatively, 1.3% of APA 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.

Dividends

Granite Ridge Resources pays an annual dividend of $0.44 per share and has a dividend yield of 9.4%. APA pays an annual dividend of $1.00 per share and has a dividend yield of 3.9%. Granite Ridge Resources pays out 157.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. APA pays out 24.0% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Granite Ridge Resources and APA, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Granite Ridge Resources	1	2	1	0	2.00
APA	3	16	6	0	2.12

Granite Ridge Resources presently has a consensus target price of $8.00, indicating a potential upside of 71.31%. APA has a consensus target price of $26.73, indicating a potential upside of 5.39%. Given Granite Ridge Resources’ higher probable upside, equities research analysts plainly believe Granite Ridge Resources is more favorable than APA.

Volatility and Risk

Granite Ridge Resources has a beta of 0.34, indicating that its stock price is 66% less volatile than the S&P 500. Comparatively, APA has a beta of 0.74, indicating that its stock price is 26% less volatile than the S&P 500.

Summary

APA beats Granite Ridge Resources on 11 of the 16 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 APA

APA Corporation, an independent energy company, explores for, develops, and produces natural gas, crude oil, and natural gas liquids. It has oil and gas operations in the United States, Egypt, and North Sea. The company also has exploration and appraisal activities in Suriname, as well as holds interests in projects located in Uruguay and internationally. APA Corporation was incorporated in 1954 and is headquartered in Houston, Texas.