Reviewing Kimbell Royalty Partners (NYSE:KRP) & Permian Resources (NYSE:PR)

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

Insider & Institutional Ownership

91.8% of Permian Resources shares are held by institutional investors. Comparatively, 25.8% of Kimbell Royalty Partners shares are held by institutional investors. 12.8% of Permian Resources shares are held by company insiders. Comparatively, 5.6% of Kimbell Royalty Partners shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Risk & Volatility

Permian Resources has a beta of 4.32, indicating that its share price is 332% more volatile than the S&P 500. Comparatively, Kimbell Royalty Partners has a beta of 1.13, indicating that its share price is 13% more volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Permian Resources	$3.12 billion	3.65	$476.31 million	$1.25	11.37
Kimbell Royalty Partners	$321.86 million	4.80	$66.54 million	$0.60	26.99

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Permian Resources	15.62%	11.91%	7.45%
Kimbell Royalty Partners	10.74%	5.03%	2.66%

Dividends

Permian Resources pays an annual dividend of $0.24 per share and has a dividend yield of 1.7%. Kimbell Royalty Partners pays an annual dividend of $1.68 per share and has a dividend yield of 10.4%. Permian Resources pays out 19.2% of its earnings in the form of a dividend. Kimbell Royalty Partners pays out 280.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Permian Resources and Kimbell Royalty Partners, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Permian Resources	0	2	13	1	2.94
Kimbell Royalty Partners	1	0	4	1	2.83

Permian Resources presently has a consensus target price of $18.73, indicating a potential upside of 31.83%. Kimbell Royalty Partners has a consensus target price of $20.50, indicating a potential upside of 26.54%. Given Permian Resources’ stronger consensus rating and higher probable upside, research analysts plainly believe Permian Resources is more favorable than Kimbell Royalty Partners.

Summary

Permian Resources beats Kimbell Royalty Partners on 13 of the 16 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 Kimbell Royalty Partners

Kimbell Royalty Partners, LP, together with its subsidiaries, engages in acquiring and owning mineral and royalty interests in oil and natural gas properties in the United States. It serves as the general partner of the company. The company was incorporated in 2015 and is based in Fort Worth, Texas.