Critical Analysis: Permian Resources (NYSE:PR) versus Lonestar Resources US (OTCMKTS:LONEQ)

Permian Resources (NYSE:PR) and Lonestar Resources US (OTCMKTS:LONEQ) are both energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, risk, institutional ownership and earnings.

Valuation & Earnings

This table compares Permian Resources and Lonestar Resources US”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Permian Resources	$5.00 billion	2.13	$984.70 million	$1.54	8.64
Lonestar Resources US	N/A	N/A	N/A	N/A	N/A

Permian Resources has higher revenue and earnings than Lonestar Resources US.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Permian Resources and Lonestar Resources US, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Permian Resources	1	0	12	2	3.00
Lonestar Resources US	0	0	0	0	0.00

Permian Resources presently has a consensus price target of $18.4667, indicating a potential upside of 38.74%. Given Permian Resources’ stronger consensus rating and higher probable upside, analysts clearly believe Permian Resources is more favorable than Lonestar Resources US.

Insider and Institutional Ownership

91.8% of Permian Resources shares are held by institutional investors. 12.8% of Permian Resources shares are held by company insiders. Comparatively, 2.9% of Lonestar Resources US shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Permian Resources and Lonestar Resources US’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Permian Resources	22.41%	10.91%	6.83%
Lonestar Resources US	N/A	N/A	N/A

Summary

Permian Resources beats Lonestar Resources US on 10 of the 10 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 Lonestar Resources US

Lonestar Resources US Inc., an independent oil and gas company, engages in the acquisition, development, and production of unconventional oil, natural gas liquids, and natural gas properties in the United States. It primarily focuses on Eagle Ford Shale properties that cover an area of 53,831 net acres in Texas counties. The company was incorporated in 2015 and is headquartered in Fort Worth, Texas. On September 30, 2020, Lonestar Resources US Inc., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas.