Financial Review: Allied Resources (OTCMKTS:ALOD) and Granite Ridge Resources (NYSE:GRNT)

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

Analyst Ratings

This is a breakdown of current recommendations and price targets for Allied Resources and Granite Ridge Resources, as reported by MarketBeat.

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

Granite Ridge Resources has a consensus price target of $7.60, suggesting a potential upside of 34.51%. Given Granite Ridge Resources’ stronger consensus rating and higher probable upside, analysts clearly believe Granite Ridge Resources is more favorable than Allied Resources.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Allied Resources	$130,000.00	3.69	-$270,000.00	N/A	N/A
Granite Ridge Resources	$380.52 million	1.94	$81.10 million	$0.36	15.69

Granite Ridge Resources has higher revenue and earnings than Allied Resources.

Profitability

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

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

Risk & Volatility

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

Insider and Institutional Ownership

31.6% of Granite Ridge Resources shares are owned by institutional investors. 1.9% of Granite Ridge Resources shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Summary

Granite Ridge Resources beats Allied Resources on 11 of the 13 factors compared between the two stocks.

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.

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.