Analyzing Granite Ridge Resources (NYSE:GRNT) & Allied Resources (OTCMKTS:ALOD)

Granite Ridge Resources (NYSE:GRNT) and Allied Resources (OTCMKTS:ALOD) are both small-cap oils/energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, profitability, valuation, risk and earnings.

Profitability

This table compares Granite Ridge Resources and Allied Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Granite Ridge Resources	12.59%	11.58%	7.89%
Allied Resources	-145.27%	-10.45%	-8.47%

Insider & Institutional Ownership

31.6% of Granite Ridge Resources shares are held by institutional investors. 1.9% of Granite Ridge Resources shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

Granite Ridge Resources has a beta of 0.23, suggesting that its share price is 77% less volatile than the S&P 500. Comparatively, Allied Resources has a beta of 0.32, suggesting that its share price is 68% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Granite Ridge Resources and Allied Resources, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Granite Ridge Resources	0	2	1	1	2.75
Allied Resources	0	0	0	0	0.00

Granite Ridge Resources currently has a consensus price target of $7.60, suggesting a potential upside of 22.78%. Given Granite Ridge Resources’ stronger consensus rating and higher probable upside, equities analysts clearly believe Granite Ridge Resources is more favorable than Allied Resources.

Valuation & Earnings

This table compares Granite Ridge Resources and Allied Resources”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Granite Ridge Resources	$380.52 million	2.13	$81.10 million	$0.36	17.19
Allied Resources	$130,000.00	3.69	-$270,000.00	($0.04)	-2.13

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

Summary

Granite Ridge Resources beats Allied Resources on 13 of the 15 factors compared between the two stocks.

About Granite Ridge Resources

Granite Ridge Resources, Inc. operates as a non-operated oil and gas exploration and production company. It owns a portfolio of wells and acreage across the Permian and other unconventional basins in the United States. Granite Ridge Resources, Inc. is based in Dallas, Texas.

About Allied Resources

Allied Resources, Inc., an independent oil and natural gas producer, engages in the exploration, development, production, and sale of oil and gas in the United States. It owns varying interests in a total of 145 wells situated on acreage of approximately 3,400 acres in Ritchie and Calhoun counties, West Virginia; and 10 wells situated on acreage of approximately 2,510 acres in Goliad, Edwards, and Jackson counties, Texas. The company was formerly known as General Allied Oil and Gas Co and changed its name to Allied Resources, Inc. in August 1998. Allied Resources, Inc. was founded in 1979 and is based in Salt Lake City, Utah.