Financial Review: Permian Resources (NYSE:PR) & Chord Energy (NASDAQ:CHRD)

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Permian Resources	$5.00 billion	2.19	$984.70 million	$1.54	8.87
Chord Energy	$5.25 billion	1.14	$848.63 million	$3.93	26.54

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

Volatility and Risk

Permian Resources has a beta of 1.42, meaning that its stock price is 42% more volatile than the S&P 500. Comparatively, Chord Energy has a beta of 0.97, meaning that its stock price is 3% less volatile than the S&P 500.

Dividends

Permian Resources pays an annual dividend of $0.60 per share and has a dividend yield of 4.4%. Chord Energy pays an annual dividend of $5.20 per share and has a dividend yield of 5.0%. Permian Resources pays out 39.0% of its earnings in the form of a dividend. Chord Energy pays out 132.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Permian Resources has raised its dividend for 1 consecutive years and Chord Energy has raised its dividend for 1 consecutive years.

Insider and Institutional Ownership

91.8% of Permian Resources shares are owned by institutional investors. Comparatively, 97.8% of Chord Energy shares are owned by institutional investors. 6.4% of Permian Resources shares are owned by insiders. Comparatively, 0.7% of Chord Energy shares are owned by 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 Chord Energy’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%
Chord Energy	5.02%	9.02%	5.97%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Permian Resources and Chord Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Permian Resources	1	0	14	2	3.00
Chord Energy	1	1	10	1	2.85

Permian Resources presently has a consensus target price of $18.63, indicating a potential upside of 36.30%. Chord Energy has a consensus target price of $147.15, indicating a potential upside of 41.06%. Given Chord Energy’s higher possible upside, analysts clearly believe Chord Energy is more favorable than Permian Resources.

Summary

Permian Resources beats Chord Energy on 11 of the 17 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 Chord Energy

Chord Energy Corporation operates as an independent exploration and production company in the United States. It acquires, explores, develops, and produces crude oil, natural gas, and natural gas liquids in the Williston Basin. The company sells its products to refiners, marketers, and other purchasers that have access to nearby pipeline and rail facilities. The company was formerly known as Oasis Petroleum Inc. and changed its name to Chord Energy Corporation in July 2022. Chord Energy Corporation was founded in 2007 and is headquartered in Houston, Texas.