Granite Ridge Resources (NYSE:GRNT) and EQT (NYSE:EQT) Critical Review

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

Risk and Volatility

Granite Ridge Resources has a beta of 0.22, meaning that its stock price is 78% less volatile than the S&P 500. Comparatively, EQT has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500.

Insider and Institutional Ownership

31.6% of Granite Ridge Resources shares are held by institutional investors. Comparatively, 90.8% of EQT shares are held by institutional investors. 1.9% of Granite Ridge Resources shares are held by company insiders. Comparatively, 0.6% of EQT shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Granite Ridge Resources and EQT”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Granite Ridge Resources	$394.07 million	2.04	$81.10 million	$0.36	17.04
EQT	$6.91 billion	4.44	$1.74 billion	$0.84	61.14

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Granite Ridge Resources	12.59%	11.58%	7.89%
EQT	5.52%	3.74%	2.12%

Dividends

Granite Ridge Resources pays an annual dividend of $0.44 per share and has a dividend yield of 7.2%. EQT pays an annual dividend of $0.63 per share and has a dividend yield of 1.2%. Granite Ridge Resources pays out 122.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. EQT pays out 75.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Ratings

This is a breakdown of current recommendations for Granite Ridge Resources and EQT, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Granite Ridge Resources	0	2	1	1	2.75
EQT	0	7	11	0	2.61

Granite Ridge Resources currently has a consensus target price of $7.60, indicating a potential upside of 23.88%. EQT has a consensus target price of $49.94, indicating a potential downside of 2.76%. Given Granite Ridge Resources’ stronger consensus rating and higher probable upside, analysts clearly believe Granite Ridge Resources is more favorable than EQT.

Summary

EQT beats Granite Ridge Resources on 9 of the 17 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 EQT

EQT Corporation operates as a natural gas production company in the United States. The company sells natural gas and natural gas liquids to marketers, utilities, and industrial customers through pipelines located in the Appalachian Basin. It also offers marketing services and contractual pipeline capacity management services. The company was formerly known as Equitable Resources Inc. and changed its name to EQT Corporation in February 2009. EQT Corporation was founded in 1878 and is headquartered in Pittsburgh, Pennsylvania.