PrimeEnergy (NASDAQ:PNRG – Get Free Report) and Viper Energy (NASDAQ:VNOM – Get Free Report) are both energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, institutional ownership, profitability, risk and dividends.
Institutional & Insider Ownership
87.7% of Viper Energy shares are owned by institutional investors. 62.8% of PrimeEnergy shares are owned by company insiders. Comparatively, 0.2% of Viper Energy shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Analyst Ratings
This is a breakdown of recent ratings and price targets for PrimeEnergy and Viper Energy, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| PrimeEnergy | 0 | 0 | 0 | 0 | 0.00 |
| Viper Energy | 0 | 0 | 16 | 0 | 3.00 |
Risk & Volatility
PrimeEnergy has a beta of 0.2, indicating that its stock price is 80% less volatile than the S&P 500. Comparatively, Viper Energy has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500.
Valuation & Earnings
This table compares PrimeEnergy and Viper Energy”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| PrimeEnergy | $237.80 million | 1.19 | $55.40 million | $14.87 | 11.52 |
| Viper Energy | $980.75 million | 11.14 | $359.24 million | $3.46 | 10.94 |
Viper Energy has higher revenue and earnings than PrimeEnergy. Viper Energy is trading at a lower price-to-earnings ratio than PrimeEnergy, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares PrimeEnergy and Viper Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| PrimeEnergy | 16.54% | 17.98% | 10.86% |
| Viper Energy | 37.84% | 3.92% | 3.28% |
Summary
Viper Energy beats PrimeEnergy on 9 of the 14 factors compared between the two stocks.
About PrimeEnergy
PrimeEnergy Resources Corporation, through its subsidiaries, engages in acquisition, development, and production of oil and natural gas properties in the United States. The company owns leasehold, mineral, and royalty interests in producing and non-producing oil and gas properties; and operates approximately 534 active wells and owns non-operating interests and royalties in 952 additional wells. It also acquires producing oil and gas properties through joint ventures with industry partners; and provides contract services to third parties, including well-servicing support, site-preparation, and construction services for oil and gas drilling and reworking operations. The company was formerly known as PrimeEnergy Corporation and changed its name to PrimeEnergy Resources Corporation in December 2018. PrimeEnergy Resources Corporation was incorporated in 1973 and is headquartered in Houston, Texas.
About Viper Energy
Viper Energy, Inc. engages in the acquisition of oil and natural gas properties. It owns, acquires, and exploits oil and natural gas properties in North America. The company was founded on February 27, 2014 and is headquartered in Midland, TX.
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