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

Granite Ridge Resources, Inc. and Obsidian Energy are both Oil & Gas E&P companies. Granite Ridge Resources, Inc. and Obsidian Energy are of similar size ($616.6M and $616.0M). Granite Ridge Resources, Inc. has negative trailing earnings, so its P/E is not meaningful; Obsidian Energy trades at 31.2×. Granite Ridge Resources, Inc. grew revenue faster over the last twelve months: 24.2% against −19.3%. Obsidian Energy has the higher net margin (4.53% vs −9.31%) and the lower return on invested capital (1.47% vs 4.80%). 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 31.19 9.65
P/S 1.22 1.46 1.73
P/B 1.27 0.64 1.23
Price to free cash flow n/m n/m 9.34
EV/EBITDA 3.53 5.57 4.58
EV/Sales 1.96 2.11 2.27
Earnings yield (7.66%) 3.21% 7.67%
Free cash flow yield (13.32%) (20.78%) 4.40%

Profitability

Metric GRNT OBE Oil & Gas E&P median
Gross margin 100.00% 63.83% 80.16%
Operating margin 13.69% 6.70% 24.33%
Net margin (9.31%) 4.53% 14.15%
Free cash flow margin 47.50% (30.26%) 10.07%
Return on equity (8.81%) 1.99% 9.41%
Return on assets (4.37%) 1.43% 5.35%
Return on invested capital 4.80% 1.47% 6.33%

Growth

Metric GRNT OBE Oil & Gas E&P median
Revenue growth (TTM) 24.18% (19.29%) 13.60%
EPS growth (last fiscal year) 28.57% 117.95% (10.17%)
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 0.85 0.25 0.29
Current ratio 0.90 0.78 0.90
Net debt to EBITDA 1.36 0.66 0.93

Dividend

Metric GRNT OBE Oil & Gas E&P median
Dividend yield 8.43% — 3.80%
Payout ratio — — 0.33

Size

Metric GRNT OBE Oil & Gas E&P median
Market cap 615.98m 616.59m 895.85m

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