Permian Resources (NYSE:PR) vs. Antero Resources (NYSE:AR) Critical Analysis

Antero Resources (NYSE:AR) and Permian Resources (NYSE:PR) are both large-cap oils/energy companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, valuation, profitability, dividends, earnings, institutional ownership and risk.

Volatility & Risk

Antero Resources has a beta of 3.36, suggesting that its stock price is 236% more volatile than the S&P 500. Comparatively, Permian Resources has a beta of 4.34, suggesting that its stock price is 334% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for Antero Resources and Permian Resources, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Antero Resources	1	7	9	2	2.63
Permian Resources	0	2	13	1	2.94

Antero Resources presently has a consensus target price of $33.50, indicating a potential upside of 3.14%. Permian Resources has a consensus target price of $18.93, indicating a potential upside of 21.60%. Given Permian Resources’ stronger consensus rating and higher probable upside, analysts plainly believe Permian Resources is more favorable than Antero Resources.

Institutional and Insider Ownership

83.0% of Antero Resources shares are owned by institutional investors. Comparatively, 91.8% of Permian Resources shares are owned by institutional investors. 6.7% of Antero Resources shares are owned by company insiders. Comparatively, 12.8% of Permian 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.

Valuation & Earnings

This table compares Antero Resources and Permian Resources”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Antero Resources	$4.68 billion	2.16	$242.92 million	$0.14	232.00
Permian Resources	$3.12 billion	4.01	$476.31 million	$1.65	9.44

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

Profitability

This table compares Antero Resources and Permian Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Antero Resources	1.03%	-0.59%	-0.32%
Permian Resources	21.20%	11.15%	6.93%

Summary

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

About Antero Resources

Antero Resources Corporation, an independent oil and natural gas company, engages in the development, production, exploration, and acquisition of natural gas, natural gas liquids (NGLs), and oil properties in the United States. It operates in three segments: Exploration and Development; Marketing; and Equity Method Investment in Antero Midstream. As of December 31, 2023, the company had approximately 515,000 net acres in the Appalachian Basin; and approximately 172,000 net acres in the Upper Devonian Shale. Its gathering and compression systems also comprise 631 miles of gas gathering pipelines in the Appalachian Basin. The company was formerly known as Antero Resources Appalachian Corporation and changed its name to Antero Resources Corporation in June 2013. Antero Resources Corporation was incorporated in 2002 and is headquartered in Denver, Colorado.

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.