Reviewing San Juan Basin Royalty Trust (NYSE:SJT) & Antero Resources (NYSE:AR)

San Juan Basin Royalty Trust (NYSE:SJT) and Antero Resources (NYSE:AR) are both energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, profitability, earnings, dividends and valuation.

Valuation and Earnings

This table compares San Juan Basin Royalty Trust and Antero Resources”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
San Juan Basin Royalty Trust	$10,000.00	15,987.23	-$390,000.00	($0.01)	-343.00
Antero Resources	$5.28 billion	2.04	$634.42 million	$3.48	10.06

Antero Resources has higher revenue and earnings than San Juan Basin Royalty Trust. San Juan Basin Royalty Trust is trading at a lower price-to-earnings ratio than Antero Resources, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

San Juan Basin Royalty Trust has a beta of 0.64, indicating that its stock price is 36% less volatile than the S&P 500. Comparatively, Antero Resources has a beta of 0.35, indicating that its stock price is 65% less volatile than the S&P 500.

Insider and Institutional Ownership

10.4% of San Juan Basin Royalty Trust shares are owned by institutional investors. Comparatively, 83.0% of Antero Resources shares are owned by institutional investors. 4.1% of Antero Resources shares are owned by 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 San Juan Basin Royalty Trust and Antero Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
San Juan Basin Royalty Trust	N/A	-37.45%	-29.01%
Antero Resources	17.68%	9.02%	5.05%

Analyst Ratings

This is a breakdown of recent ratings and price targets for San Juan Basin Royalty Trust and Antero Resources, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
San Juan Basin Royalty Trust	1	0	0	0	1.00
Antero Resources	0	6	12	4	2.91

Antero Resources has a consensus target price of $49.06, indicating a potential upside of 40.13%. Given Antero Resources’ stronger consensus rating and higher possible upside, analysts clearly believe Antero Resources is more favorable than San Juan Basin Royalty Trust.

Summary

Antero Resources beats San Juan Basin Royalty Trust on 13 of the 15 factors compared between the two stocks.

About San Juan Basin Royalty Trust

San Juan Basin Royalty Trust operates as an express trust in Texas. The company has a 75% net overriding royalty interest in Southland’s oil and natural gas interests in properties located in the San Juan Basin in northwestern New Mexico. It also owns subject interests consist of working interests, royalty interests, overriding royalty interests, and other contractual rights in 119,000 net-producing acres in San Juan, Rio Arriba, and Sandoval Counties of northwestern New Mexico. The company was founded in 1980 and is based in Dallas, Texas.

About Antero Resources

Antero Resources Corporation, an independent oil and natural gas company, engages in the development, production, exploration, and acquisition of natural gas, natural gas liquids (NGLs), and oil properties in the United States. It operates in three segments: Exploration and Development; Marketing; and Equity Method Investment in Antero Midstream. As of December 31, 2023, the company had approximately 515,000 net acres in the Appalachian Basin; and approximately 172,000 net acres in the Upper Devonian Shale. Its gathering and compression systems also comprise 631 miles of gas gathering pipelines in the Appalachian Basin. The company was formerly known as Antero Resources Appalachian Corporation and changed its name to Antero Resources Corporation in June 2013. Antero Resources Corporation was incorporated in 2002 and is headquartered in Denver, Colorado.