Reviewing Northern Oil and Gas (NYSE:NOG) and Granite Ridge Resources (NYSE:GRNT)

Granite Ridge Resources (NYSE:GRNT) and Northern Oil and Gas (NYSE:NOG) are both energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, dividends, analyst recommendations, profitability, earnings and valuation.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Granite Ridge Resources and Northern Oil and Gas, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Granite Ridge Resources	1	2	1	0	2.00
Northern Oil and Gas	1	5	4	1	2.45

Granite Ridge Resources currently has a consensus target price of $8.00, suggesting a potential upside of 56.10%. Northern Oil and Gas has a consensus target price of $33.00, suggesting a potential upside of 53.85%. Given Granite Ridge Resources’ higher possible upside, analysts plainly believe Granite Ridge Resources is more favorable than Northern Oil and Gas.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Granite Ridge Resources	8.38%	12.12%	7.10%
Northern Oil and Gas	23.62%	22.12%	9.49%

Risk and Volatility

Granite Ridge Resources has a beta of 0.34, meaning that its share price is 66% less volatile than the S&P 500. Comparatively, Northern Oil and Gas has a beta of 1.48, meaning that its share price is 48% more volatile than the S&P 500.

Dividends

Granite Ridge Resources pays an annual dividend of $0.44 per share and has a dividend yield of 8.6%. Northern Oil and Gas pays an annual dividend of $1.80 per share and has a dividend yield of 8.4%. Granite Ridge Resources pays out 157.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Northern Oil and Gas pays out 101.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Northern Oil and Gas has increased its dividend for 4 consecutive years.

Insider and Institutional Ownership

31.6% of Granite Ridge Resources shares are held by institutional investors. Comparatively, 98.8% of Northern Oil and Gas shares are held by institutional investors. 8.5% of Granite Ridge Resources shares are held by company insiders. Comparatively, 2.9% of Northern Oil and Gas shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Granite Ridge Resources and Northern Oil and Gas”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Granite Ridge Resources	$380.03 million	1.77	$18.76 million	$0.28	18.30
Northern Oil and Gas	$2.19 billion	0.95	$520.31 million	$1.77	12.12

Northern Oil and Gas has higher revenue and earnings than Granite Ridge Resources. Northern Oil and Gas is trading at a lower price-to-earnings ratio than Granite Ridge Resources, indicating that it is currently the more affordable of the two stocks.

Summary

Northern Oil and Gas beats Granite Ridge Resources on 13 of the 18 factors compared between the two stocks.

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.

About Northern Oil and Gas

Northern Oil and Gas, Inc., an independent energy company, engages in the acquisition, exploration, exploitation, development, and production of crude oil and natural gas properties in the United States. It primarily holds interests in the Williston Basin, the Appalachian Basin, and the Permian Basin in the United States. The company is based in Minnetonka, Minnesota.