Viper Energy Partners (NASDAQ:VNOM) and Continental Resources (NYSE:CLR) are both oils/energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, earnings, analyst recommendations, institutional ownership, profitability, dividends and valuation.
Viper Energy Partners pays an annual dividend of $1.00 per share and has a dividend yield of 5.2%. Continental Resources pays an annual dividend of $0.44 per share and has a dividend yield of 1.2%. Viper Energy Partners pays out 357.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Continental Resources pays out -37.6% of its earnings in the form of a dividend. Continental Resources has raised its dividend for 1 consecutive years.
This table compares Viper Energy Partners and Continental Resources’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Viper Energy Partners||-19.77%||-0.01%||-0.01%|
Earnings & Valuation
This table compares Viper Energy Partners and Continental Resources’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Viper Energy Partners||$250.63 million||11.96||-$192.30 million||$0.28||68.86|
|Continental Resources||$2.59 billion||5.01||-$596.87 million||($1.17)||-30.16|
Viper Energy Partners has higher earnings, but lower revenue than Continental Resources. Continental Resources is trading at a lower price-to-earnings ratio than Viper Energy Partners, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Viper Energy Partners has a beta of 2.76, indicating that its stock price is 176% more volatile than the S&P 500. Comparatively, Continental Resources has a beta of 3.31, indicating that its stock price is 231% more volatile than the S&P 500.
This is a summary of recent recommendations for Viper Energy Partners and Continental Resources, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Viper Energy Partners||0||2||13||0||2.87|
Viper Energy Partners presently has a consensus target price of $15.83, indicating a potential downside of 17.88%. Continental Resources has a consensus target price of $28.34, indicating a potential downside of 19.69%. Given Viper Energy Partners’ stronger consensus rating and higher probable upside, analysts clearly believe Viper Energy Partners is more favorable than Continental Resources.
Institutional & Insider Ownership
30.9% of Viper Energy Partners shares are owned by institutional investors. Comparatively, 13.8% of Continental Resources shares are owned by institutional investors. 0.3% of Viper Energy Partners shares are owned by company insiders. Comparatively, 82.4% of Continental Resources shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Viper Energy Partners beats Continental Resources on 11 of the 17 factors compared between the two stocks.
About Viper Energy Partners
Viper Energy Partners LP owns, acquires, and exploits oil and natural gas properties in North America. As of December 31, 2020, it had mineral interests in 24,350 net royalty acres in the Permian Basin and Eagle Ford Shale; and estimated proved oil and natural gas reserves of 99,392 thousand barrels of crude oil equivalent. Viper Energy Partners GP LLC operates as the general partner of the company. The company was founded in 2013 and is based in Midland, Texas. Viper Energy Partners LP is a subsidiary of Diamondback Energy, Inc.
About Continental Resources
Continental Resources, Inc. explores for, develops, and produces crude oil and natural gas primarily in the north, south, and east regions of the United States. The company sells its crude oil and natural gas production to energy marketing companies, crude oil refining companies, and natural gas gathering and processing companies. As of December 31, 2020, its proved reserves were 1,104 million barrels of crude oil equivalent (MMBoe) with proved developed reserves of 627 MMBoe. The company was founded in 1967 and is headquartered in Oklahoma City, Oklahoma.
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