Reviewing Permian Resources (NYSE:PR) and EQT (NYSE:EQT)

EQT (NYSE:EQT) and Permian Resources (NYSE:PR) are both large-cap energy companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, dividends, profitability and risk.

Dividends

EQT pays an annual dividend of $0.66 per share and has a dividend yield of 1.1%. Permian Resources pays an annual dividend of $0.64 per share and has a dividend yield of 3.0%. EQT pays out 19.9% of its earnings in the form of a dividend. Permian Resources pays out 51.2% 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. EQT has raised its dividend for 3 consecutive years and Permian Resources has raised its dividend for 1 consecutive years.

Profitability

This table compares EQT and Permian Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
EQT	23.59%	7.25%	4.63%
Permian Resources	18.46%	10.83%	6.91%

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EQT	$8.64 billion	4.31	$2.04 billion	$3.31	18.02
Permian Resources	$5.07 billion	3.50	$935.17 million	$1.25	16.95

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

Volatility & Risk

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

Analyst Recommendations

This is a breakdown of recent ratings and target prices for EQT and Permian Resources, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EQT	0	5	19	3	2.93
Permian Resources	0	2	12	4	3.11

EQT currently has a consensus target price of $68.00, suggesting a potential upside of 14.03%. Permian Resources has a consensus target price of $21.43, suggesting a potential upside of 1.15%. Given EQT’s higher possible upside, equities analysts plainly believe EQT is more favorable than Permian Resources.

Institutional & Insider Ownership

90.8% of EQT shares are owned by institutional investors. Comparatively, 91.8% of Permian Resources shares are owned by institutional investors. 0.7% of EQT shares are owned by company insiders. Comparatively, 6.4% of Permian Resources shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

EQT beats Permian Resources on 11 of the 18 factors compared between the two stocks.

About EQT

EQT Corporation operates as a natural gas production company in the United States. The company sells natural gas and natural gas liquids to marketers, utilities, and industrial customers through pipelines located in the Appalachian Basin. It also offers marketing services and contractual pipeline capacity management services. The company was formerly known as Equitable Resources Inc. and changed its name to EQT Corporation in February 2009. EQT Corporation was founded in 1878 and is headquartered in Pittsburgh, Pennsylvania.

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.