Contrasting Murphy Oil (NYSE:MUR) and PrimeEnergy Resources (NASDAQ:PNRG)

Murphy Oil (NYSE:MUR) and PrimeEnergy Resources (NASDAQ:PNRG) are both oils/energy companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, analyst recommendations, risk, dividends, earnings, institutional ownership and profitability.

Risk and Volatility

Murphy Oil has a beta of 2.14, indicating that its stock price is 114% more volatile than the S&P 500. Comparatively, PrimeEnergy Resources has a beta of 0.54, indicating that its stock price is 46% less volatile than the S&P 500.

Profitability

This table compares Murphy Oil and PrimeEnergy Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Murphy Oil	13.44%	7.66%	4.28%
PrimeEnergy Resources	27.73%	32.76%	18.13%

Insider and Institutional Ownership

78.3% of Murphy Oil shares are owned by institutional investors. 5.9% of Murphy Oil shares are owned by company insiders. Comparatively, 61.1% of PrimeEnergy Resources shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations for Murphy Oil and PrimeEnergy Resources, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Murphy Oil	1	9	4	0	2.21
PrimeEnergy Resources	0	0	0	0	0.00

Murphy Oil currently has a consensus price target of $36.33, indicating a potential upside of 26.40%. Given Murphy Oil’s stronger consensus rating and higher probable upside, analysts clearly believe Murphy Oil is more favorable than PrimeEnergy Resources.

Valuation & Earnings

This table compares Murphy Oil and PrimeEnergy Resources”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Murphy Oil	$3.03 billion	1.38	$407.17 million	$2.69	10.69
PrimeEnergy Resources	$123.12 million	2.77	$28.10 million	$23.26	8.54

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

Summary

Murphy Oil beats PrimeEnergy Resources on 8 of the 14 factors compared between the two stocks.

About Murphy Oil

Murphy Oil Corporation, together with its subsidiaries, operates as an oil and gas exploration and production company in the United States, Canada, and internationally. It explores for and produces crude oil, natural gas, and natural gas liquids. The company was formerly known as Murphy Corporation and changed its name to Murphy Oil Corporation in 1964. The company was incorporated in 1950 and is headquartered in Houston, Texas.

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.