Critical Survey: PrimeEnergy Resources (NASDAQ:PNRG) & PetroQuest Energy (OTCMKTS:PQUE)

Institutional and Insider Ownership

1.6% of PetroQuest Energy shares are held by institutional investors. 61.1% of PrimeEnergy Resources shares are held by insiders. Comparatively, 8.8% of PetroQuest Energy shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares PrimeEnergy Resources and PetroQuest Energy”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PrimeEnergy Resources	$209.65 million	1.77	$28.10 million	$23.26	9.30
PetroQuest Energy	$108.29 million	0.00	-$6.63 million	($0.55)	-0.04

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

Profitability

This table compares PrimeEnergy Resources and PetroQuest Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
PrimeEnergy Resources	27.73%	32.76%	18.13%
PetroQuest Energy	-4.93%	N/A	-3.76%

Volatility and Risk

PrimeEnergy Resources has a beta of 0.56, suggesting that its share price is 44% less volatile than the S&P 500. Comparatively, PetroQuest Energy has a beta of 1.56, suggesting that its share price is 56% more volatile than the S&P 500.

Summary

PrimeEnergy Resources beats PetroQuest Energy on 9 of the 11 factors compared between the two stocks.

About PrimeEnergy Resources

PrimeEnergy Resources Corporation, through its subsidiaries, engages in acquisition, development, and production of oil and natural gas properties in the United States. The company owns leasehold, mineral, and royalty interests in producing and non-producing oil and gas properties; and operates approximately 534 active wells and owns non-operating interests and royalties in 952 additional wells. It also acquires producing oil and gas properties through joint ventures with industry partners; and provides contract services to third parties, including well-servicing support, site-preparation, and construction services for oil and gas drilling and reworking operations. The company was formerly known as PrimeEnergy Corporation and changed its name to PrimeEnergy Resources Corporation in December 2018. PrimeEnergy Resources Corporation was incorporated in 1973 and is headquartered in Houston, Texas.

About PetroQuest Energy

PetroQuest Energy, Inc. operates as an independent oil and gas company in Texas and Louisiana. The company acquires, explores for, develops, and operates oil and gas properties. As of December 31, 2017, it had estimated proved reserves of 1.8 million barrels of oil; 19.4 billion cubic feet equivalent of natural gas liquids; and 125.4 billion cubic feet of natural gas. PetroQuest Energy, Inc. was founded in 1983 and is headquartered in Lafayette, Louisiana.