Contrasting PrimeEnergy (PNRG) and Its Rivals

PrimeEnergy (NASDAQ:PNRG) is one of 1,051 public companies in the “Oil, Gas & Consumable Fuels” industry, but how does it contrast to its peers? We will compare PrimeEnergy to related businesses based on the strength of its profitability, institutional ownership, dividends, valuation, analyst recommendations, risk and earnings.

Earnings & Valuation

This table compares PrimeEnergy and its peers gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
PrimeEnergy	$189.05 million	$26.31 million	17.42
PrimeEnergy Competitors	$11.60 billion	$5.51 billion	-0.45

PrimeEnergy’s peers have higher revenue and earnings than PrimeEnergy. PrimeEnergy is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Insider & Institutional Ownership

30.8% of shares of all “Oil, Gas & Consumable Fuels” companies are owned by institutional investors. 65.3% of PrimeEnergy shares are owned by company insiders. Comparatively, 15.3% of shares of all “Oil, Gas & Consumable Fuels” companies 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.

Risk & Volatility

PrimeEnergy has a beta of -0.28, meaning that its stock price is 128% less volatile than the S&P 500. Comparatively, PrimeEnergy’s peers have a beta of -3.76, meaning that their average stock price is 476% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for PrimeEnergy and its peers, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PrimeEnergy	0	2	0	0	2.00
PrimeEnergy Competitors	5970	26964	40817	2413	2.52

As a group, “Oil, Gas & Consumable Fuels” companies have a potential upside of 28.44%. Given PrimeEnergy’s peers stronger consensus rating and higher probable upside, analysts plainly believe PrimeEnergy has less favorable growth aspects than its peers.

Profitability

This table compares PrimeEnergy and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PrimeEnergy	13.87%	11.47%	7.67%
PrimeEnergy Competitors	-469.71%	19.37%	6.42%

Summary

PrimeEnergy peers beat PrimeEnergy on 8 of the 13 factors compared.

PrimeEnergy Company Profile

PrimeEnergy Resources Corporation, through its subsidiaries, engages in acquisition, development, and production of oil and natural gas properties in the United States. The company owns leasehold, mineral, and royalty interests in producing and non-producing oil and gas properties; and operates approximately 534 active wells and owns non-operating interests and royalties in 952 additional wells. It also acquires producing oil and gas properties through joint ventures with industry partners; and provides contract services to third parties, including well-servicing support, site-preparation, and construction services for oil and gas drilling and reworking operations. The company was formerly known as PrimeEnergy Corporation and changed its name to PrimeEnergy Resources Corporation in December 2018. PrimeEnergy Resources Corporation was incorporated in 1973 and is headquartered in Houston, Texas.