EQT (NYSE:EQT) & Granite Ridge Resources (NYSE:GRNT) Critical Comparison

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

Analyst Recommendations

This is a summary of recent recommendations for EQT and Granite Ridge Resources, as provided by MarketBeat.

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

EQT currently has a consensus price target of $49.94, suggesting a potential downside of 4.23%. Granite Ridge Resources has a consensus price target of $7.60, suggesting a potential upside of 22.28%. Given Granite Ridge Resources’ stronger consensus rating and higher probable upside, analysts clearly believe Granite Ridge Resources is more favorable than EQT.

Insider & Institutional Ownership

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

Risk & Volatility

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EQT	$6.91 billion	4.50	$1.74 billion	$0.84	62.09
Granite Ridge Resources	$394.07 million	2.06	$81.10 million	$0.36	17.26

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.

Dividends

EQT pays an annual dividend of $0.63 per share and has a dividend yield of 1.2%. Granite Ridge Resources pays an annual dividend of $0.44 per share and has a dividend yield of 7.1%. 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. 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.

Profitability

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

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

Summary

EQT beats Granite Ridge Resources on 9 of the 17 factors compared between the two stocks.

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.

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.