Analyzing Viper Energy (NASDAQ:VNOM) & Greenfire Resources (NYSE:GFR)

Viper Energy (NASDAQ:VNOM) and Greenfire Resources (NYSE:GFR) are both energy companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, profitability, risk, earnings and dividends.

Valuation & Earnings

This table compares Viper Energy and Greenfire Resources”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Viper Energy	$1.40 billion	10.54	-$68.00 million	$0.13	314.85
Greenfire Resources	$431.77 million	1.78	$34.00 million	($0.28)	-21.84

Greenfire Resources has lower revenue, but higher earnings than Viper Energy. Greenfire Resources is trading at a lower price-to-earnings ratio than Viper Energy, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Viper Energy and Greenfire Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Viper Energy	2.89%	3.43%	2.85%
Greenfire Resources	-6.36%	-3.50%	-2.89%

Volatility & Risk

Viper Energy has a beta of 0.39, meaning that its stock price is 61% less volatile than the S&P 500. Comparatively, Greenfire Resources has a beta of 0.18, meaning that its stock price is 82% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Viper Energy and Greenfire Resources, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Viper Energy	0	2	16	0	2.89
Greenfire Resources	1	1	1	1	2.50

Viper Energy currently has a consensus target price of $56.93, suggesting a potential upside of 39.10%. Greenfire Resources has a consensus target price of $11.50, suggesting a potential upside of 88.06%. Given Greenfire Resources’ higher possible upside, analysts plainly believe Greenfire Resources is more favorable than Viper Energy.

Insider & Institutional Ownership

87.7% of Viper Energy shares are held by institutional investors. Comparatively, 88.9% of Greenfire Resources shares are held by institutional investors. 0.2% of Viper Energy shares are held by company insiders. Comparatively, 20.0% of Greenfire Resources shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Viper Energy beats Greenfire Resources on 10 of the 15 factors compared between the two stocks.

About Viper Energy

Viper Energy, Inc. engages in the acquisition of oil and natural gas properties. It owns, acquires, and exploits oil and natural gas properties in North America. The company was founded on February 27, 2014 and is headquartered in Midland, TX.

About Greenfire Resources

Greenfire Resources Ltd., together with its subsidiaries, engages in the development, exploration, and operation of oil and gas properties in the Athabasca oil sands region of Alberta. The company operates the Tier-1 oil sands assets located in Western Canada. It utilizes steam-assisted gravity drainage (SAGD) extraction technology, a situ thermal oil recovery process to recover diluted and non- diluted bitumen. The company is headquartered in Calgary, Canada.