Reviewing Kosmos Energy (NYSE:KOS) and Permian Resources (NYSE:PR)

Permian Resources (NYSE:PR) and Kosmos Energy (NYSE:KOS) are both oils/energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, profitability, earnings, valuation, institutional ownership and analyst recommendations.

Earnings & Valuation

This table compares Permian Resources and Kosmos Energy”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Permian Resources	$4.83 billion	2.43	$476.31 million	$1.65	8.86
Kosmos Energy	$1.70 billion	0.88	$213.52 million	$0.44	7.22

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

Institutional & Insider Ownership

91.8% of Permian Resources shares are owned by institutional investors. Comparatively, 95.3% of Kosmos Energy shares are owned by institutional investors. 12.8% of Permian Resources shares are owned by insiders. Comparatively, 2.0% of Kosmos Energy shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and price targets for Permian Resources and Kosmos Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Permian Resources	0	2	14	1	2.94
Kosmos Energy	0	2	3	0	2.60

Permian Resources currently has a consensus price target of $19.13, indicating a potential upside of 30.78%. Kosmos Energy has a consensus price target of $5.52, indicating a potential upside of 73.86%. Given Kosmos Energy’s higher possible upside, analysts plainly believe Kosmos Energy is more favorable than Permian Resources.

Profitability

This table compares Permian Resources and Kosmos Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Permian Resources	21.20%	11.15%	6.93%
Kosmos Energy	12.21%	31.08%	6.53%

Risk and Volatility

Permian Resources has a beta of 4.32, suggesting that its stock price is 332% more volatile than the S&P 500. Comparatively, Kosmos Energy has a beta of 2.43, suggesting that its stock price is 143% more volatile than the S&P 500.

Summary

Permian Resources beats Kosmos Energy on 12 of the 15 factors compared between the two stocks.

About Permian Resources

Permian Resources Corporation, an independent oil and natural gas company, focuses on the development of crude oil and related liquids-rich natural gas reserves in the United States. The company’s assets primarily focus on the Delaware Basin, a sub-basin of the Permian Basin. Its properties consist of acreage blocks in West Texas, Eddy County, Lea County, and New Mexico. The company was formerly known as Centennial Resource Development, Inc. and changed its name to Permian Resources Corporation in September 2022. Permian Resources Corporation was incorporated in 2015 and is headquartered in Midland, Texas.

About Kosmos Energy

Kosmos Energy Ltd., together with its subsidiaries, engages in the exploration, development, and production of oil and gas along the Atlantic Margins in the United States. The company’s primary assets include production projects located in offshore Ghana, Equatorial Guinea, and the U.S. Gulf of Mexico, as well as gas projects located in offshore Mauritania and Senegal. It undertakes a proven basin exploration program in Equatorial Guinea and the U.S. Gulf of Mexico. Kosmos Energy Ltd. was founded in 2003 and is headquartered in Dallas, Texas.