Analyzing Northern Oil and Gas (NYSE:NOG) and Granite Ridge Resources (NYSE:GRNT)

Northern Oil and Gas (NYSE:NOG) and Granite Ridge Resources (NYSE:GRNT) are both energy companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, analyst recommendations, valuation, dividends and profitability.

Dividends

Northern Oil and Gas pays an annual dividend of $1.80 per share and has a dividend yield of 8.4%. Granite Ridge Resources pays an annual dividend of $0.44 per share and has a dividend yield of 8.6%. Northern Oil and Gas pays out 101.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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. Northern Oil and Gas has increased its dividend for 4 consecutive years.

Earnings & Valuation

This table compares Northern Oil and Gas and Granite Ridge Resources”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Northern Oil and Gas	$2.19 billion	0.95	$520.31 million	$1.77	12.12
Granite Ridge Resources	$380.03 million	1.77	$18.76 million	$0.28	18.30

Northern Oil and Gas has higher revenue and earnings than Granite Ridge Resources. Northern Oil and Gas 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.

Volatility & Risk

Northern Oil and Gas has a beta of 1.48, meaning that its stock price is 48% more volatile than the S&P 500. Comparatively, Granite Ridge Resources has a beta of 0.34, meaning that its stock price is 66% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Northern Oil and Gas and Granite Ridge Resources, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Northern Oil and Gas	1	5	4	1	2.45
Granite Ridge Resources	1	2	1	0	2.00

Northern Oil and Gas presently has a consensus target price of $33.00, suggesting a potential upside of 53.85%. Granite Ridge Resources has a consensus target price of $8.00, suggesting a potential upside of 56.10%. Given Granite Ridge Resources’ higher possible upside, analysts clearly believe Granite Ridge Resources is more favorable than Northern Oil and Gas.

Profitability

This table compares Northern Oil and Gas and Granite Ridge Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Northern Oil and Gas	23.62%	22.12%	9.49%
Granite Ridge Resources	8.38%	12.12%	7.10%

Insider and Institutional Ownership

98.8% of Northern Oil and Gas shares are owned by institutional investors. Comparatively, 31.6% of Granite Ridge Resources shares are owned by institutional investors. 2.9% of Northern Oil and Gas shares are owned by company insiders. Comparatively, 8.5% of Granite Ridge Resources shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Northern Oil and Gas beats Granite Ridge Resources on 13 of the 18 factors compared between the two stocks.

About Northern Oil and Gas

Northern Oil and Gas, Inc., an independent energy company, engages in the acquisition, exploration, exploitation, development, and production of crude oil and natural gas properties in the United States. It primarily holds interests in the Williston Basin, the Appalachian Basin, and the Permian Basin in the United States. The company is based in Minnetonka, Minnesota.

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.