Head-To-Head Review: Sable Offshore (NYSE:SOC) vs. Granite Ridge Resources (NYSE:GRNT)

Sable Offshore (NYSE:SOC) and Granite Ridge Resources (NYSE:GRNT) are both small-cap oils/energy companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, dividends, risk, profitability, valuation and earnings.

Insider and Institutional Ownership

26.2% of Sable Offshore shares are owned by institutional investors. Comparatively, 31.6% of Granite Ridge Resources shares are owned by institutional investors. 14.3% of Sable Offshore shares are owned by insiders. Comparatively, 1.9% of Granite Ridge Resources shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Sable Offshore and Granite Ridge Resources, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sable Offshore	0	0	3	0	3.00
Granite Ridge Resources	0	2	1	1	2.75

Sable Offshore currently has a consensus target price of $29.67, indicating a potential upside of 25.84%. Granite Ridge Resources has a consensus target price of $7.93, indicating a potential upside of 35.15%. Given Granite Ridge Resources’ higher possible upside, analysts plainly believe Granite Ridge Resources is more favorable than Sable Offshore.

Risk and Volatility

Sable Offshore has a beta of 0.26, suggesting that its stock price is 74% less volatile than the S&P 500. Comparatively, Granite Ridge Resources has a beta of 0.19, suggesting that its stock price is 81% less volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sable Offshore	N/A	N/A	-$32.18 million	N/A	N/A
Granite Ridge Resources	$394.85 million	1.94	$81.10 million	$0.45	13.04

Granite Ridge Resources has higher revenue and earnings than Sable Offshore.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Sable Offshore	N/A	-451.70%	-51.62%
Granite Ridge Resources	14.39%	13.01%	9.10%

Summary

Granite Ridge Resources beats Sable Offshore on 8 of the 12 factors compared between the two stocks.

About Sable Offshore

Sable Offshore Corp. engages in the oil and gas exploration and development activities in the United States. The company operates through three platforms located in federal waters offshore California. It owns and operates 16 federal leases across approximately 76,000 acres and subsea pipelines, which transport crude oil, natural gas, and produced water from the platforms to the onshore processing facilities. The company was formerly known as Flame Acquisition Corp. and changed its name to Sable Offshore Corp. in February 2024. Sable Offshore Corp. was incorporated in 2020 and is based in Houston, Texas.

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.