Global Partners (NYSE:GLP) & Permian Resources (NYSE:PR) Financial Survey

Global Partners (NYSE:GLP) and Permian Resources (NYSE:PR) are both energy companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, institutional ownership, profitability, analyst recommendations, risk, dividends and valuation.

Risk and Volatility

Global Partners has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500. Comparatively, Permian Resources has a beta of 0.66, meaning that its share price is 34% less volatile than the S&P 500.

Dividends

Global Partners pays an annual dividend of $3.12 per share and has a dividend yield of 6.7%. Permian Resources pays an annual dividend of $0.64 per share and has a dividend yield of 2.9%. Global Partners pays out 63.5% of its earnings in the form of a dividend. Permian Resources pays out 42.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Global Partners has raised its dividend for 5 consecutive years and Permian Resources has raised its dividend for 1 consecutive years. Global Partners is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a summary of current ratings for Global Partners and Permian Resources, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Global Partners	0	2	1	0	2.33
Permian Resources	0	3	14	5	3.09

Global Partners presently has a consensus target price of $46.00, suggesting a potential downside of 1.95%. Permian Resources has a consensus target price of $24.83, suggesting a potential upside of 12.14%. Given Permian Resources’ stronger consensus rating and higher probable upside, analysts plainly believe Permian Resources is more favorable than Global Partners.

Valuation and Earnings

This table compares Global Partners and Permian Resources”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Global Partners	$18.56 billion	0.09	$79.22 million	$4.91	9.56
Permian Resources	$5.07 billion	3.66	$935.17 million	$1.51	14.66

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

Insider and Institutional Ownership

38.1% of Global Partners shares are owned by institutional investors. Comparatively, 91.8% of Permian Resources shares are owned by institutional investors. 41.5% of Global Partners shares are owned by company insiders. Comparatively, 5.0% of Permian Resources shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Global Partners	0.91%	30.87%	4.92%
Permian Resources	21.52%	13.47%	8.66%

Summary

Permian Resources beats Global Partners on 11 of the 18 factors compared between the two stocks.

About Global Partners

Global Partners LP engages in the purchasing, selling, gathering, blending, storing, and logistics of transporting gasoline and gasoline blendstocks, distillates, residual oil, renewable fuels, crude oil, and propane to wholesalers, retailers, and commercial customers. The company operates through three segments: Wholesale, Gasoline Distribution and Station Operations, and Commercial. The Wholesale segment sells home heating oil, branded and unbranded gasoline and gasoline blendstocks, diesel, kerosene, and residual oil to home heating oil and propane retailers and wholesale distributors. This segment also transports the products by railcars, barges, trucks and/or pipelines. Its Gasoline Distribution and Station Operations segment sells branded and unbranded gasoline to gasoline station operators and sub-jobbers; operates gasoline stations and convenience stores; and provides car wash, lottery, and ATM services, as well as leases gasoline stations. The Commercial segment sells and delivers unbranded gasoline, home heating oil, diesel, kerosene, residual oil, and bunker fuel to customers in the public sector, as well as to commercial and industrial end-users; and sells custom blended fuels. The company is also involved in the transportation of petroleum products and renewable fuels through rail from the mid-continent region of the United States and Canada. Global Partners LP was founded in 2005 and is based in Waltham, Massachusetts.

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.