Reviewing Permian Resources (NYSE:PR) and Vitesse Energy (NYSE:VTS)

Vitesse Energy (NYSE:VTSGet Free Report) and Permian Resources (NYSE:PRGet Free Report) are both energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, dividends, profitability, risk, earnings, analyst recommendations and institutional ownership.

Insider & Institutional Ownership

51.6% of Vitesse Energy shares are owned by institutional investors. Comparatively, 91.8% of Permian Resources shares are owned by institutional investors. 13.9% of Vitesse Energy shares are owned by insiders. Comparatively, 5.0% of Permian Resources shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Vitesse Energy and Permian Resources, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vitesse Energy 0 3 0 0 2.00
Permian Resources 0 4 13 4 3.00

Vitesse Energy currently has a consensus target price of $20.00, indicating a potential upside of 10.22%. Permian Resources has a consensus target price of $22.38, indicating a potential upside of 9.41%. Given Vitesse Energy’s higher probable upside, analysts clearly believe Vitesse Energy is more favorable than Permian Resources.

Profitability

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

Net Margins Return on Equity Return on Assets
Vitesse Energy -7.15% 3.53% 2.43%
Permian Resources 12.79% 10.53% 6.71%

Earnings and Valuation

This table compares Vitesse Energy and Permian Resources”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Vitesse Energy $273.99 million 2.76 $25.28 million ($0.50) -36.29
Permian Resources $5.08 billion 3.37 $935.17 million $0.86 23.78

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

Risk & Volatility

Vitesse Energy has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500. Comparatively, Permian Resources has a beta of 0.52, suggesting that its stock price is 48% less volatile than the S&P 500.

Dividends

Vitesse Energy pays an annual dividend of $1.75 per share and has a dividend yield of 9.6%. Permian Resources pays an annual dividend of $0.64 per share and has a dividend yield of 3.1%. Vitesse Energy pays out -350.0% of its earnings in the form of a dividend. Permian Resources pays out 74.4% 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. Vitesse Energy has increased its dividend for 2 consecutive years and Permian Resources has increased its dividend for 1 consecutive years. Vitesse Energy is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Permian Resources beats Vitesse Energy on 12 of the 18 factors compared between the two stocks.

About Vitesse Energy

(Get Free Report)

Vitesse Energy, Inc., together with its subsidiaries, engages in the acquisition, development, and production of non-operated oil and natural gas properties in the United States. It owns and acquires non-operated working interest and royalty interest ownership in the Williston Basin properties located in North Dakota and Montana. The company also owns non-operated interests in the Central Rockies properties located in Colorado and Wyoming. Vitesse Energy, Inc. was founded in 2014 and is based in Centennial, Colorado.

About Permian Resources

(Get Free Report)

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.

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