Critical Survey: Paramount Resources (OTCMKTS:PRMRF) & CNX Resources (NYSE:CNX)

Paramount Resources (OTCMKTS:PRMRF) and CNX Resources (NYSE:CNX) are both mid-cap energy companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, risk, valuation, dividends, profitability, earnings and institutional ownership.

Volatility & Risk

Paramount Resources has a beta of 0.87, indicating that its stock price is 13% less volatile than the S&P 500. Comparatively, CNX Resources has a beta of 0.69, indicating that its stock price is 31% less volatile than the S&P 500.

Valuation and Earnings

This table compares Paramount Resources and CNX Resources”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Paramount Resources	$692.73 million	5.01	$922.32 million	$0.57	41.68
CNX Resources	$2.24 billion	2.29	$633.16 million	$5.99	5.77

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

Profitability

This table compares Paramount Resources and CNX Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Paramount Resources	12.52%	4.31%	3.20%
CNX Resources	36.53%	10.40%	5.14%

Insider & Institutional Ownership

4.1% of Paramount Resources shares are held by institutional investors. Comparatively, 95.2% of CNX Resources shares are held by institutional investors. 36.3% of Paramount Resources shares are held by company insiders. Comparatively, 5.0% of CNX Resources shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Paramount Resources and CNX Resources, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Paramount Resources	0	3	4	1	2.75
CNX Resources	3	8	0	0	1.73

CNX Resources has a consensus target price of $34.38, indicating a potential downside of 0.61%. Given CNX Resources’ higher possible upside, analysts clearly believe CNX Resources is more favorable than Paramount Resources.

Summary

Paramount Resources beats CNX Resources on 8 of the 15 factors compared between the two stocks.

About Paramount Resources

Paramount Resources Ltd. explores for and develops conventional and unconventional petroleum and natural gas reserves and resources in Canada. The company holds interests in the Karr and Wapiti Montney properties covering an area of 109,000 net acres located south of the city of Grande Prairie, Alberta; Kaybob North Duvernay development and natural gas producing properties covering an area of 124,000 net acres located in west-central Alberta; and Willesden Green Duvernay development in central Alberta and shale gas producing properties in the Horn River Basin in northeast British Columbia covering an area of 249,000 net acres. The company was founded in 1976 and is based in Calgary, Canada.

About CNX Resources

CNX Resources Corporation, an independent natural gas and midstream company, engages in the acquisition, exploration, development, and production of natural gas properties in the Appalachian Basin. The company operates in two segments, Shale and Coalbed Methane (CBM). It produces and sells pipeline quality natural gas primarily for gas wholesalers. The company owns rights to extract natural gas from shale properties in Pennsylvania, West Virginia, and Ohio, as well as rights to extract natural gas from other shale and shallow oil and gas formations in Illinois, Indiana, New York, and Virginia. It also owns rights to extract CBM in Virginia, West Virginia, Pennsylvania, Ohio, Illinois, Indiana, and New Mexico. In addition, the company designs, builds, and operates natural gas gathering systems to move gas from the wellhead to interstate pipelines or other local sales points; owns and operates approximately 2,600 miles of natural gas gathering pipelines, as well as various natural gas processing facilities. It also offers turn-key solutions for water sourcing, delivery, and disposal for its natural gas operations and for third parties. The company was formerly known as CONSOL Energy Inc. and changed its name to CNX Resources Corporation in November 2017. CNX Resources Corporation was founded in 1860 and is headquartered in Canonsburg, Pennsylvania.