Viper Energy (NASDAQ:VNOM) and Granite Ridge Resources (NYSE:GRNT) Head-To-Head Analysis

Granite Ridge Resources (NYSE:GRNT) and Viper Energy (NASDAQ:VNOM) are both energy companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, valuation, institutional ownership, risk, profitability, earnings and analyst recommendations.

Volatility & Risk

Granite Ridge Resources has a beta of 0.34, suggesting that its stock price is 66% less volatile than the S&P 500. Comparatively, Viper Energy has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for Granite Ridge Resources and Viper Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Granite Ridge Resources	1	2	1	0	2.00
Viper Energy	0	2	15	0	2.88

Granite Ridge Resources presently has a consensus target price of $8.00, indicating a potential upside of 53.99%. Viper Energy has a consensus target price of $54.27, indicating a potential upside of 46.11%. Given Granite Ridge Resources’ higher possible upside, equities research analysts clearly believe Granite Ridge Resources is more favorable than Viper Energy.

Valuation & Earnings

This table compares Granite Ridge Resources and Viper Energy”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Granite Ridge Resources	$451.13 million	1.51	$18.76 million	$0.28	18.55
Viper Energy	$860.39 million	12.46	$359.24 million	$2.42	15.35

Viper Energy has higher revenue and earnings than Granite Ridge Resources. Viper Energy is trading at a lower price-to-earnings ratio than Granite Ridge Resources, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

31.6% of Granite Ridge Resources shares are owned by institutional investors. Comparatively, 87.7% of Viper Energy shares are owned by institutional investors. 8.5% of Granite Ridge Resources shares are owned by company insiders. Comparatively, 0.2% of Viper Energy shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Dividends

Granite Ridge Resources pays an annual dividend of $0.44 per share and has a dividend yield of 8.5%. Viper Energy pays an annual dividend of $1.32 per share and has a dividend yield of 3.6%. Granite Ridge Resources pays out 157.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Viper Energy pays out 54.5% of its earnings in the form of a dividend.

Profitability

This table compares Granite Ridge Resources and Viper Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Granite Ridge Resources	8.38%	12.12%	7.10%
Viper Energy	20.62%	3.09%	2.55%

Summary

Viper Energy beats Granite Ridge Resources on 10 of the 16 factors compared between the two stocks.

About Granite Ridge Resources

Granite Ridge Resources, Inc. operates as a non-operated oil and gas exploration and production company. It owns a portfolio of wells and acreage across the Permian and other unconventional basins in the United States. Granite Ridge Resources, Inc. is based in Dallas, Texas.

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.