Permian Resources (NYSE:PR – Get Free Report) and Murphy Oil (NYSE:MUR – Get Free Report) are both energy companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, dividends, risk and earnings.
Profitability
This table compares Permian Resources and Murphy Oil’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Permian Resources | 18.46% | 10.83% | 6.91% |
| Murphy Oil | 3.83% | 3.73% | 2.01% |
Analyst Recommendations
This is a breakdown of current recommendations for Permian Resources and Murphy Oil, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Permian Resources | 0 | 3 | 13 | 1 | 2.88 |
| Murphy Oil | 1 | 13 | 1 | 0 | 2.00 |
Dividends
Permian Resources pays an annual dividend of $0.64 per share and has a dividend yield of 3.2%. Murphy Oil pays an annual dividend of $1.40 per share and has a dividend yield of 3.7%. Permian Resources pays out 51.2% of its earnings in the form of a dividend. Murphy Oil pays out 194.4% 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 Murphy Oil has raised its dividend for 5 consecutive years. Murphy Oil is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Institutional and Insider Ownership
91.8% of Permian Resources shares are held by institutional investors. Comparatively, 78.3% of Murphy Oil shares are held by institutional investors. 6.4% of Permian Resources shares are held by company insiders. Comparatively, 6.5% of Murphy Oil shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Volatility and Risk
Permian Resources has a beta of 0.66, suggesting that its stock price is 34% less volatile than the S&P 500. Comparatively, Murphy Oil has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500.
Valuation and Earnings
This table compares Permian Resources and Murphy Oil”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Permian Resources | $5.07 billion | 3.27 | $935.17 million | $1.25 | 15.97 |
| Murphy Oil | $2.72 billion | 2.00 | $104.23 million | $0.72 | 52.99 |
Permian Resources has higher revenue and earnings than Murphy Oil. Permian Resources is trading at a lower price-to-earnings ratio than Murphy Oil, indicating that it is currently the more affordable of the two stocks.
Summary
Permian Resources beats Murphy Oil on 13 of the 18 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 Murphy Oil
Murphy Oil Corporation, together with its subsidiaries, operates as an oil and gas exploration and production company in the United States, Canada, and internationally. It explores for and produces crude oil, natural gas, and natural gas liquids. The company was formerly known as Murphy Corporation and changed its name to Murphy Oil Corporation in 1964. The company was incorporated in 1950 and is headquartered in Houston, Texas.
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