Reviewing Prairie Operating (NASDAQ:PROP) & Antero Resources (NYSE:AR)

Antero Resources (NYSE:AR) and Prairie Operating (NASDAQ:PROP) are both energy companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, institutional ownership, profitability, earnings and risk.

Profitability

This table compares Antero Resources and Prairie Operating’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Antero Resources	17.68%	9.02%	5.05%
Prairie Operating	-13.02%	46.53%	5.51%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Antero Resources and Prairie Operating, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Antero Resources	0	6	12	4	2.91
Prairie Operating	2	1	1	0	1.75

Antero Resources currently has a consensus target price of $48.67, indicating a potential upside of 40.17%. Prairie Operating has a consensus target price of $2.50, indicating a potential upside of 553.77%. Given Prairie Operating’s higher probable upside, analysts clearly believe Prairie Operating is more favorable than Antero Resources.

Earnings & Valuation

This table compares Antero Resources and Prairie Operating”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Antero Resources	$5.28 billion	2.02	$634.42 million	$3.48	9.98
Prairie Operating	$241.65 million	0.18	$32.05 million	($2.05)	-0.19

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

Institutional and Insider Ownership

83.0% of Antero Resources shares are owned by institutional investors. Comparatively, 34.3% of Prairie Operating shares are owned by institutional investors. 4.1% of Antero Resources shares are owned by company insiders. Comparatively, 3.1% of Prairie Operating shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Antero Resources has a beta of 0.54, suggesting that its stock price is 46% less volatile than the S&P 500. Comparatively, Prairie Operating has a beta of 1.23, suggesting that its stock price is 23% more volatile than the S&P 500.

Summary

Antero Resources beats Prairie Operating on 11 of the 15 factors compared between the two stocks.

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.

About Prairie Operating

Prairie Operating Co., an independent energy company, engages in the development, exploration, and production of oil, natural gas, and natural gas liquids in the United States. The company holds assets in the Denver-Julesburg Basin in Colorado; and the Niobrara and Codell formations. Prairie Operating Co. is based in Houston Texas.