Granite Ridge Resources, Inc. (GRNT) vs Obsidian Energy (OBE)

Granite Ridge Resources, Inc. and Obsidian Energy are both Oil & Gas E&P companies. Obsidian Energy is the larger, with a market value of $750.7M against $598.8M — 1.3× the size. Granite Ridge Resources, Inc. has negative trailing earnings, so its P/E is not meaningful; Obsidian Energy trades at 34.5×. Granite Ridge Resources, Inc. grew revenue faster over the last twelve months: 14.6% against −19.3%. Obsidian Energy has the higher net margin (4.53% vs −5.56%) and the lower return on invested capital (1.47% vs 2.36%). Across the 19 metrics below, Granite Ridge Resources, Inc. leads on 11 and Obsidian Energy on 8.

Valuation

Metric GRNT OBE Oil & Gas E&P median
P/E n/m 34.48 10.57
P/S 1.17 1.61 1.80
P/B 1.03 0.71 1.27
Price to free cash flow n/m n/m 9.99
EV/EBITDA 3.80 5.98 5.08
EV/Sales 2.01 2.27 2.39
Earnings yield (4.73%) 2.90% 6.06%
Free cash flow yield (17.37%) (18.80%) 6.17%

Profitability

Metric GRNT OBE Oil & Gas E&P median
Gross margin 100.00% 63.83% 80.41%
Operating margin 7.47% 6.70% 21.39%
Net margin (5.56%) 4.53% 14.17%
Free cash flow margin (20.35%) (30.26%) 9.71%
Return on equity (4.58%) 1.99% 10.05%
Return on assets (2.35%) 1.43% 5.81%
Return on invested capital 2.36% 1.47% 6.32%

Growth

Metric GRNT OBE Oil & Gas E&P median
Revenue growth (TTM) 14.60% (19.29%) 9.94%
EPS growth (last fiscal year) 28.57% 117.95% —
Revenue growth, 5-year CAGR 38.90% 15.86% 18.67%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric GRNT OBE Oil & Gas E&P median
Debt to equity 0.82 0.25 0.28
Current ratio 1.02 0.78 0.96
Net debt to EBITDA 1.36 0.66 0.91

Dividend

Metric GRNT OBE Oil & Gas E&P median
Dividend yield 8.01% — 4.93%
Payout ratio 0.00 0.00 0.07

Size

Metric GRNT OBE Oil & Gas E&P median
Market cap 598.83m 750.71m 923.59m

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