Mach Natural Resources (NYSE:MNR – Get Free Report) and Paramount Resources (OTCMKTS:PRMRF – Get Free Report) are both energy companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, valuation, analyst recommendations, risk, institutional ownership and dividends.
Profitability
This table compares Mach Natural Resources and Paramount Resources’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Mach Natural Resources | 7.44% | 16.06% | 8.23% |
| Paramount Resources | 12.52% | 4.31% | 3.20% |
Analyst Ratings
This is a summary of recent ratings and price targets for Mach Natural Resources and Paramount Resources, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Mach Natural Resources | 1 | 3 | 3 | 2 | 2.67 |
| Paramount Resources | 0 | 3 | 4 | 1 | 2.75 |
Valuation & Earnings
This table compares Mach Natural Resources and Paramount Resources”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Mach Natural Resources | $1.18 billion | 1.46 | $142.98 million | $0.59 | 17.43 |
| Paramount Resources | $692.73 million | 4.40 | $922.32 million | $0.57 | 36.61 |
Paramount Resources has lower revenue, but higher earnings than Mach Natural Resources. Mach Natural 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.
Institutional and Insider Ownership
78.4% of Mach Natural Resources shares are held by institutional investors. Comparatively, 4.1% of Paramount Resources shares are held by institutional investors. 87.8% of Mach Natural Resources shares are held by company insiders. Comparatively, 36.3% of Paramount Resources shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Volatility & Risk
Mach Natural Resources has a beta of -0.22, indicating that its share price is 122% less volatile than the S&P 500. Comparatively, Paramount Resources has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500.
Dividends
Mach Natural Resources pays an annual dividend of $1.44 per share and has a dividend yield of 14.0%. Paramount Resources pays an annual dividend of $0.43 per share and has a dividend yield of 2.1%. Mach Natural Resources pays out 244.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Paramount Resources pays out 75.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Mach Natural Resources has raised its dividend for 1 consecutive years. Mach Natural Resources is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
Mach Natural Resources beats Paramount Resources on 10 of the 18 factors compared between the two stocks.
About Mach Natural Resources
Mach Natural Resources LP, an independent upstream oil and gas company, focuses on the acquisition, development, and production of oil, natural gas, and natural gas liquids reserves in the Anadarko Basin region of Western Oklahoma, Southern Kansas, and the panhandle of Texas. It also owns a portfolio of midstream assets, as well as owns plants and water infrastructure. The company was incorporated in 2023 and is headquartered in Oklahoma City, Oklahoma.
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.
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