Head to Head Analysis: HighPeak Energy (NASDAQ:HPK) & PrimeEnergy (NASDAQ:PNRG)

PrimeEnergy (NASDAQ:PNRG) and HighPeak Energy (NASDAQ:HPK) are both small-cap energy companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, earnings, risk, institutional ownership and profitability.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for PrimeEnergy and HighPeak Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PrimeEnergy	0	1	0	0	2.00
HighPeak Energy	3	1	0	1	1.80

HighPeak Energy has a consensus target price of $11.67, indicating a potential upside of 120.13%. Given HighPeak Energy’s higher possible upside, analysts clearly believe HighPeak Energy is more favorable than PrimeEnergy.

Profitability

This table compares PrimeEnergy and HighPeak Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PrimeEnergy	12.69%	12.19%	7.53%
HighPeak Energy	6.03%	4.23%	2.21%

Risk and Volatility

PrimeEnergy has a beta of -0.03, suggesting that its share price is 103% less volatile than the S&P 500. Comparatively, HighPeak Energy has a beta of 0.64, suggesting that its share price is 36% less volatile than the S&P 500.

Insider and Institutional Ownership

24.1% of HighPeak Energy shares are owned by institutional investors. 62.8% of PrimeEnergy shares are owned by company insiders. Comparatively, 77.5% of HighPeak Energy shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares PrimeEnergy and HighPeak Energy”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PrimeEnergy	$237.80 million	1.29	$55.40 million	$10.45	17.99
HighPeak Energy	$1.07 billion	0.62	$95.07 million	$0.36	14.72

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

About PrimeEnergy

PrimeEnergy Resources Corporation, through its subsidiaries, engages in acquisition, development, and production of oil and natural gas properties in the United States. The company owns leasehold, mineral, and royalty interests in producing and non-producing oil and gas properties; and operates approximately 534 active wells and owns non-operating interests and royalties in 952 additional wells. It also acquires producing oil and gas properties through joint ventures with industry partners; and provides contract services to third parties, including well-servicing support, site-preparation, and construction services for oil and gas drilling and reworking operations. The company was formerly known as PrimeEnergy Corporation and changed its name to PrimeEnergy Resources Corporation in December 2018. PrimeEnergy Resources Corporation was incorporated in 1973 and is headquartered in Houston, Texas.

About HighPeak Energy

HighPeak Energy, Inc., an independent oil and natural gas company, engages in the exploration, development, and production of crude oil, natural gas, and natural gas liquids reserves in the Permian Basin in West Texas and Eastern New Mexico. The company was incorporated in 2019 and is headquartered in Fort Worth, Texas.