Comparing Granite Ridge Resources (NYSE:GRNT) & ENI (NYSE:E)

Granite Ridge Resources (NYSE:GRNT) and ENI (NYSE:E) are both oils/energy companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, risk, valuation, earnings, dividends and profitability.

Analyst Ratings

This is a summary of recent ratings for Granite Ridge Resources and ENI, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Granite Ridge Resources	0	2	2	1	2.80
ENI	0	3	2	0	2.40

Granite Ridge Resources presently has a consensus price target of $7.95, suggesting a potential upside of 17.43%. Given Granite Ridge Resources’ stronger consensus rating and higher probable upside, analysts plainly believe Granite Ridge Resources is more favorable than ENI.

Volatility & Risk

Granite Ridge Resources has a beta of 0.2, suggesting that its share price is 80% less volatile than the S&P 500. Comparatively, ENI has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500.

Dividends

Granite Ridge Resources pays an annual dividend of $0.44 per share and has a dividend yield of 6.5%. ENI pays an annual dividend of $1.40 per share and has a dividend yield of 4.4%. Granite Ridge Resources pays out 97.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. ENI pays out 60.3% of its earnings in the form of a dividend.

Profitability

This table compares Granite Ridge Resources and ENI’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Granite Ridge Resources	15.43%	14.35%	10.30%
ENI	3.95%	12.57%	4.88%

Insider and Institutional Ownership

31.6% of Granite Ridge Resources shares are owned by institutional investors. Comparatively, 1.2% of ENI shares are owned by institutional investors. 1.9% of Granite Ridge Resources shares are owned by insiders. Comparatively, 0.0% of ENI shares are owned by 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.

Earnings & Valuation

This table compares Granite Ridge Resources and ENI’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Granite Ridge Resources	$394.07 million	2.25	$81.10 million	$0.45	15.04
ENI	$102.67 billion	0.52	$5.16 billion	$2.32	13.65

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

Summary

Granite Ridge Resources beats ENI on 11 of the 16 factors compared between the two stocks.

About Granite Ridge Resources

Granite Ridge Resources, Inc. operates as a non-operated oil and gas exploration and production company. It owns a portfolio of wells and acreage across the Permian and other unconventional basins in the United States. Granite Ridge Resources, Inc. is based in Dallas, Texas.

About ENI

Eni S.p.A. operates as an integrated energy company worldwide. The company engages in exploration, development, extracting, manufacturing, and marketing crude oil and natural gas, oil-based fuels, chemical products, and gas-fired power, as well as energy products from renewable sources. It operates through Exploration & Production; Global Gas & LNG Portfolio (GGP); Enilive, Refining and Chemicals; Plenitude & Power; and Corporate and Other Activities segments. The company engages in research, development, and production of oil, condensates, and natural gas. It is also involved in the supply and sale of wholesale natural gas through pipeline; and international transport, and purchase and marketing of liquefied natural gas. In addition, the company supplies bio-feedstock and crude oil; and stores, produces, distributes, and markets biofuels, oil products, biomethane, basic chemical and petrochemical products, intermediates, plastics and elastomers, and other chemicals, as well as provides smart mobility solutions and mobility services. Further, it engages in the retail marketing of gas, electricity, and related services; production and wholesale sale of electricity from thermoelectric and renewable plants; and provision of services for E-mobility. The company was founded in 1953 and is headquartered in Rome, Italy.