Reviewing Antero Resources (NYSE:AR) & Permian Resources (NYSE:PR)

Permian Resources (NYSE:PR) and Antero Resources (NYSE:AR) are both large-cap oils/energy companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, dividends, analyst recommendations and valuation.

Earnings and Valuation

This table compares Permian Resources and Antero Resources”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Permian Resources	$3.12 billion	4.01	$476.31 million	$1.65	9.44
Antero Resources	$4.68 billion	2.16	$242.92 million	$0.14	232.00

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

Profitability

This table compares Permian Resources and Antero Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Permian Resources	21.20%	11.15%	6.93%
Antero Resources	1.03%	-0.59%	-0.32%

Volatility & Risk

Permian Resources has a beta of 4.34, suggesting that its stock price is 334% more volatile than the S&P 500. Comparatively, Antero Resources has a beta of 3.36, suggesting that its stock price is 236% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Permian Resources and Antero Resources, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Permian Resources	0	2	13	1	2.94
Antero Resources	1	7	9	2	2.63

Permian Resources currently has a consensus target price of $18.93, suggesting a potential upside of 21.60%. Antero Resources has a consensus target price of $33.50, suggesting a potential upside of 3.14%. Given Permian Resources’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Permian Resources is more favorable than Antero Resources.

Institutional and Insider Ownership

91.8% of Permian Resources shares are owned by institutional investors. Comparatively, 83.0% of Antero Resources shares are owned by institutional investors. 12.8% of Permian Resources shares are owned by insiders. Comparatively, 6.7% of Antero Resources shares are owned by 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.

Summary

Permian Resources beats Antero Resources on 12 of the 15 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 Antero Resources

Antero Resources Corporation, an independent oil and natural gas company, engages in the development, production, exploration, and acquisition of natural gas, natural gas liquids (NGLs), and oil properties in the United States. It operates in three segments: Exploration and Development; Marketing; and Equity Method Investment in Antero Midstream. As of December 31, 2023, the company had approximately 515,000 net acres in the Appalachian Basin; and approximately 172,000 net acres in the Upper Devonian Shale. Its gathering and compression systems also comprise 631 miles of gas gathering pipelines in the Appalachian Basin. The company was formerly known as Antero Resources Appalachian Corporation and changed its name to Antero Resources Corporation in June 2013. Antero Resources Corporation was incorporated in 2002 and is headquartered in Denver, Colorado.