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

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

Valuation & Earnings

This table compares Range Resources and Granite Ridge Resources”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Range Resources	$3.21 billion	2.75	$658.02 million	$3.78	9.92
Granite Ridge Resources	$450.31 million	1.38	$24.35 million	($0.25)	-18.78

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.

Profitability

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

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

Volatility & Risk

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

Analyst Ratings

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

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

Range Resources presently has a consensus price target of $44.00, indicating a potential upside of 17.39%. Granite Ridge Resources has a consensus price target of $11.00, indicating a potential upside of 134.29%. Given Granite Ridge Resources’ higher possible upside, analysts clearly believe Granite Ridge Resources is more favorable than Range Resources.

Institutional and Insider Ownership

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

Dividends

Range Resources pays an annual dividend of $0.40 per share and has a dividend yield of 1.1%. Granite Ridge Resources pays an annual dividend of $0.44 per share and has a dividend yield of 9.4%. Range Resources pays out 10.6% of its earnings in the form of a dividend. Granite Ridge Resources pays out -176.0% 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 raised its dividend for 1 consecutive years. Granite Ridge Resources is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Range Resources beats Granite Ridge Resources on 14 of the 18 factors compared between the two stocks.

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.

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.