PrimeEnergy Resources (NASDAQ:PNRG) and Diversified Energy (NYSE:DEC) Critical Analysis

PrimeEnergy Resources (NASDAQ:PNRG) and Diversified Energy (NYSE:DEC) are both small-cap oils/energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, risk, valuation and earnings.

Analyst Ratings

This is a breakdown of current ratings and target prices for PrimeEnergy Resources and Diversified Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PrimeEnergy Resources	0	0	0	0	N/A
Diversified Energy	0	0	1	0	3.00

Diversified Energy has a consensus price target of $20.00, indicating a potential upside of 25.27%. Given Diversified Energy’s higher possible upside, analysts plainly believe Diversified Energy is more favorable than PrimeEnergy Resources.

Institutional and Insider Ownership

26.5% of Diversified Energy shares are owned by institutional investors. 61.1% of PrimeEnergy Resources shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
PrimeEnergy Resources	26.50%	24.03%	13.59%
Diversified Energy	N/A	N/A	N/A

Earnings & Valuation

This table compares PrimeEnergy Resources and Diversified Energy’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PrimeEnergy Resources	$123.12 million	1.71	$28.10 million	$14.64	8.06
Diversified Energy	$868.26 million	0.89	$758.02 million	N/A	N/A

Diversified Energy has higher revenue and earnings than PrimeEnergy Resources.

About PrimeEnergy Resources

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 Diversified Energy

Diversified Energy Company PLC operates as an independent owner and operator of producing natural gas and oil wells primarily in the Appalachian Basin of the United States. The company is involved in the production, marketing, and transportation of natural gas, natural gas liquids, crude oil, and condensates. Its assets consist of natural gas wells and gathering systems located in the states of Tennessee, Kentucky, Virginia, West Virginia, Ohio, Pennsylvania, Oklahoma, Texas, and Louisiana. The company was formerly known as Diversified Gas & Oil PLC and changed its name to Diversified Energy Company PLC in May 2021. Diversified Energy Company PLC was founded in 2001 and is headquartered in Birmingham, Alabama.