Comparing DHT (NYSE:DHT) and Permian Resources (NYSE:PR)

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

Dividends

Permian Resources pays an annual dividend of $0.64 per share and has a dividend yield of 2.8%. DHT pays an annual dividend of $4.88 per share and has a dividend yield of 19.6%. Permian Resources pays out 42.4% of its earnings in the form of a dividend. DHT pays out 166.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Permian Resources has increased its dividend for 1 consecutive years.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Permian Resources	$5.07 billion	3.78	$935.17 million	$1.51	15.14
DHT	$498.40 million	8.05	$211.09 million	$2.94	8.47

Permian Resources has higher revenue and earnings than DHT. DHT 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

91.8% of Permian Resources shares are held by institutional investors. Comparatively, 58.5% of DHT shares are held by institutional investors. 5.0% of Permian Resources shares are held by insiders. Comparatively, 1.6% of DHT shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations for Permian Resources and DHT, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Permian Resources	0	2	14	6	3.18
DHT	0	2	3	0	2.60

Permian Resources presently has a consensus price target of $24.83, indicating a potential upside of 8.61%. DHT has a consensus price target of $21.00, indicating a potential downside of 15.68%. Given Permian Resources’ stronger consensus rating and higher probable upside, research analysts clearly believe Permian Resources is more favorable than DHT.

Risk and Volatility

Permian Resources has a beta of 0.66, suggesting that its share price is 34% less volatile than the S&P 500. Comparatively, DHT has a beta of -0.03, suggesting that its share price is 103% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Permian Resources	21.52%	13.47%	8.66%
DHT	65.52%	39.40%	28.63%

Summary

Permian Resources beats DHT on 12 of the 18 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 DHT

DHT Holdings, Inc., through its subsidiaries, owns and operates crude oil tankers primarily in Monaco, Singapore, and Norway. The company also offers technical management services. As of March 15, 2024, it had a fleet of 24 very large crude carriers. The company was incorporated in 2005 and is headquartered in Hamilton, Bermuda.