Viper Energy (NASDAQ:VNOM – Get Free Report) and Greenfire Resources (NYSE:GFR – Get Free Report) are both energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, risk, institutional ownership, valuation, dividends and earnings.
Institutional and Insider Ownership
87.7% of Viper Energy shares are held by institutional investors. Comparatively, 88.9% of Greenfire Resources shares are held by institutional investors. 0.2% of Viper Energy shares are held by insiders. Comparatively, 20.0% of Greenfire Resources shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Profitability
This table compares Viper Energy and Greenfire Resources’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Viper Energy | 2.89% | 3.43% | 2.85% |
| Greenfire Resources | -6.36% | -3.50% | -2.89% |
Valuation and Earnings
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Viper Energy | $1.40 billion | 11.19 | -$68.00 million | $0.13 | 334.21 |
| Greenfire Resources | $431.77 million | 1.88 | $34.00 million | ($0.28) | -23.09 |
Greenfire Resources has lower revenue, but higher earnings than Viper Energy. Greenfire Resources is trading at a lower price-to-earnings ratio than Viper Energy, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent recommendations for Viper Energy and Greenfire Resources, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Viper Energy | 0 | 2 | 16 | 0 | 2.89 |
| Greenfire Resources | 1 | 1 | 1 | 1 | 2.50 |
Viper Energy presently has a consensus price target of $56.93, indicating a potential upside of 31.04%. Greenfire Resources has a consensus price target of $11.50, indicating a potential upside of 77.88%. Given Greenfire Resources’ higher probable upside, analysts plainly believe Greenfire Resources is more favorable than Viper Energy.
Volatility & Risk
Viper Energy has a beta of 0.39, suggesting that its share price is 61% less volatile than the S&P 500. Comparatively, Greenfire Resources has a beta of 0.18, suggesting that its share price is 82% less volatile than the S&P 500.
Summary
Viper Energy beats Greenfire Resources on 10 of the 15 factors compared between the two stocks.
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.
About Greenfire Resources
Greenfire Resources Ltd., together with its subsidiaries, engages in the development, exploration, and operation of oil and gas properties in the Athabasca oil sands region of Alberta. The company operates the Tier-1 oil sands assets located in Western Canada. It utilizes steam-assisted gravity drainage (SAGD) extraction technology, a situ thermal oil recovery process to recover diluted and non- diluted bitumen. The company is headquartered in Calgary, Canada.
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