Financial Survey: Legacy Reserves (OTCMKTS:LGCYQ) versus Permian Resources (NYSE:PR)

Legacy Reserves (OTCMKTS:LGCYQ) and Permian Resources (NYSE:PR) are both energy companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, valuation, risk, institutional ownership, analyst recommendations, earnings and profitability.

Profitability

This table compares Legacy Reserves and Permian Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Legacy Reserves	N/A	N/A	N/A
Permian Resources	22.41%	10.91%	6.83%

Analyst Ratings

This is a breakdown of recent ratings for Legacy Reserves and Permian Resources, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Legacy Reserves	0	0	0	0	0.00
Permian Resources	1	0	14	2	3.00

Permian Resources has a consensus price target of $18.73, suggesting a potential upside of 46.30%. Given Permian Resources’ stronger consensus rating and higher possible upside, analysts clearly believe Permian Resources is more favorable than Legacy Reserves.

Institutional and Insider Ownership

91.8% of Permian Resources shares are owned by institutional investors. 0.8% of Legacy Reserves shares are owned by company insiders. Comparatively, 6.4% of Permian Resources shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Legacy Reserves and Permian Resources”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Legacy Reserves	N/A	N/A	N/A	N/A	N/A
Permian Resources	$5.00 billion	2.05	$984.70 million	$1.54	8.31

Permian Resources has higher revenue and earnings than Legacy Reserves.

Summary

Permian Resources beats Legacy Reserves on 10 of the 10 factors compared between the two stocks.

About Legacy Reserves

Legacy Reserves Inc., an independent energy company, engages in the acquisition, development, and production of oil and natural gas properties in the United States. It focuses on the horizontal development of unconventional plays in the Permian Basin and the management of shallow-decline oil and natural gas wells in the regions of Permian Basin, East Texas, Rocky Mountain, and Mid-Continent. As of December 31, 2018, the company had proved reserves of approximately 164.9 million barrels of crude oil equivalent covering natural gas, as well as oil and natural gas liquids. Legacy Reserves Inc. was founded in 2005 and is based in Midland, Texas. On June 18, 2019, Legacy Reserves Inc., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas.

About Permian Resources

Permian Resources Corporation, an independent oil and natural gas company, focuses on the development of crude oil and related liquids-rich natural gas reserves in the United States. The company’s assets primarily focus on the Delaware Basin, a sub-basin of the Permian Basin. Its properties consist of acreage blocks in West Texas, Eddy County, Lea County, and New Mexico. The company was formerly known as Centennial Resource Development, Inc. and changed its name to Permian Resources Corporation in September 2022. Permian Resources Corporation was incorporated in 2015 and is headquartered in Midland, Texas.