Critical Review: Veren (NYSE:VRN) and PHX Minerals (NYSE:PHX)

Veren (NYSE:VRN) and PHX Minerals (NYSE:PHX) are both oils/energy companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, risk, institutional ownership, valuation, dividends and profitability.

Risk & Volatility

Veren has a beta of 2.13, suggesting that its stock price is 113% more volatile than the S&P 500. Comparatively, PHX Minerals has a beta of 0.57, suggesting that its stock price is 43% less volatile than the S&P 500.

Profitability

This table compares Veren and PHX Minerals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Veren	26.93%	12.23%	6.80%
PHX Minerals	12.33%	4.16%	3.12%

Institutional & Insider Ownership

49.4% of Veren shares are owned by institutional investors. Comparatively, 38.2% of PHX Minerals shares are owned by institutional investors. 0.3% of Veren shares are owned by company insiders. Comparatively, 6.4% of PHX Minerals shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations for Veren and PHX Minerals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Veren	0	0	2	1	3.33
PHX Minerals	0	0	2	0	3.00

Veren currently has a consensus target price of $12.67, indicating a potential upside of 137.65%. PHX Minerals has a consensus target price of $4.90, indicating a potential upside of 23.43%. Given Veren’s stronger consensus rating and higher probable upside, equities analysts clearly believe Veren is more favorable than PHX Minerals.

Dividends

Veren pays an annual dividend of $0.34 per share and has a dividend yield of 6.4%. PHX Minerals pays an annual dividend of $0.16 per share and has a dividend yield of 4.0%. Veren pays out 24.3% of its earnings in the form of a dividend. PHX Minerals pays out 123.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Veren is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings & Valuation

This table compares Veren and PHX Minerals”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Veren	$4.30 billion	0.76	$422.48 million	$1.40	3.81
PHX Minerals	$38.33 million	3.88	$13.92 million	$0.13	30.54

Veren has higher revenue and earnings than PHX Minerals. Veren is trading at a lower price-to-earnings ratio than PHX Minerals, indicating that it is currently the more affordable of the two stocks.

Summary

Veren beats PHX Minerals on 13 of the 16 factors compared between the two stocks.

About Veren

Veren Inc. explores, develops, and produces oil and gas properties in Canada and the United States. The company focuses on crude oil, tight oil, natural gas liquids, shale gas, and natural gas reserves. Its properties are located in the provinces of Saskatchewan, Alberta, British Columbia, and Manitoba; and the states of North Dakota. The company was formerly known as Crescent Point Energy Corp. and changed its name to Veren Inc. in May 2024. Veren Inc. was incorporated in 1994 and is headquartered in Calgary, Canada.

About PHX Minerals

PHX Minerals Inc. operates as a natural gas and oil mineral company in the United States. The company produces and sells natural gas, crude oil, and natural gas liquids. Its principal properties are located in Oklahoma, Texas, Louisiana, North Dakota, and Arkansas. The company sells its products to various purchasers, including pipeline and marketing companies. The company was formerly known as Panhandle Oil and Gas Inc. and changed its name to PHX Minerals Inc. in October 2020. PHX Minerals Inc. was founded in 1926 and is headquartered in Fort Worth, Texas.