Suncor Energy (NYSE:SU) vs. Granite Ridge Resources (NYSE:GRNT) Head to Head Analysis

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

Insider & Institutional Ownership

67.4% of Suncor Energy shares are owned by institutional investors. Comparatively, 31.6% of Granite Ridge Resources shares are owned by institutional investors. 1.0% of Suncor Energy shares are owned by insiders. Comparatively, 8.6% of Granite Ridge Resources shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for Suncor Energy and Granite Ridge Resources, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Suncor Energy	0	3	7	1	2.82
Granite Ridge Resources	1	1	2	1	2.60

Suncor Energy currently has a consensus price target of $80.25, suggesting a potential upside of 16.48%. Granite Ridge Resources has a consensus price target of $10.00, suggesting a potential upside of 96.27%. Given Granite Ridge Resources’ higher probable upside, analysts clearly believe Granite Ridge Resources is more favorable than Suncor Energy.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Suncor Energy	15.62%	20.05%	10.06%
Granite Ridge Resources	-5.56%	4.67%	2.33%

Dividends

Suncor Energy pays an annual dividend of $1.73 per share and has a dividend yield of 2.5%. Granite Ridge Resources pays an annual dividend of $0.44 per share and has a dividend yield of 8.6%. Suncor Energy pays out 31.9% of its earnings in the form of a dividend. Granite Ridge Resources pays out -209.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Suncor Energy has raised its dividend for 4 consecutive years. Granite Ridge Resources is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares Suncor Energy and Granite Ridge Resources”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Suncor Energy	$35.29 billion	2.28	$4.24 billion	$5.43	12.69
Granite Ridge Resources	$450.31 million	1.49	$24.35 million	($0.21)	-24.26

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

Risk & Volatility

Suncor Energy has a beta of 0.3, suggesting that its share price is 70% less volatile than the S&P 500. Comparatively, Granite Ridge Resources has a beta of 0.21, suggesting that its share price is 79% less volatile than the S&P 500.

Summary

Suncor Energy beats Granite Ridge Resources on 13 of the 17 factors compared between the two stocks.

About Suncor Energy

Suncor Energy Inc. operates as an integrated energy company in Canada, the United States, and internationally. It operates through Oil Sands; Exploration and Production; and Refining and Marketing segments. The Oil Sands segment explores, develops, and produces bitumen, synthetic crude oil, and related products. This segment also engages in oil sands mining. The Exploration and Production segment is involved in offshore operations in the East Coast of Canada; and marketing and risk management of crude oil and natural gas. The Refining and Marketing segment engages in the refining of crude oil products; and distribution, marketing, transportation, and risk management of refined and petrochemical products, and other purchased products through the retail and wholesale networks. This segment is also involved in the trading of crude oil, refined products, natural gas, and power. The company was formerly known as Suncor Inc. and changed its name to Suncor Energy Inc. in April 1997. Suncor Energy Inc. was founded in 1917 and is headquartered in Calgary, Canada. Suncor Energy Inc.

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.