Critical Survey: Veren (NYSE:VRN) versus Legacy Reserves (OTCMKTS:LGCYQ)

Veren (NYSE:VRN) and Legacy Reserves (OTCMKTS:LGCYQ) are both oils/energy companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, earnings, institutional ownership, risk, valuation, profitability and analyst recommendations.

Insider and Institutional Ownership

49.4% of Veren shares are held by institutional investors. 0.3% of Veren shares are held by insiders. Comparatively, 0.8% of Legacy Reserves shares are held 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.

Profitability

This table compares Veren and Legacy Reserves’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Veren	26.93%	12.23%	6.80%
Legacy Reserves	N/A	N/A	N/A

Analyst Recommendations

This is a summary of current recommendations and price targets for Veren and Legacy Reserves, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Veren	0	0	2	1	3.33
Legacy Reserves	0	0	0	0	0.00

Veren presently has a consensus price target of $12.67, indicating a potential upside of 141.27%. Given Veren’s stronger consensus rating and higher probable upside, research analysts plainly believe Veren is more favorable than Legacy Reserves.

Valuation and Earnings

This table compares Veren and Legacy Reserves”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Veren	$2.59 billion	1.25	$422.48 million	$1.40	3.75
Legacy Reserves	N/A	N/A	N/A	N/A	N/A

Veren has higher revenue and earnings than Legacy Reserves.

Summary

Veren beats Legacy Reserves on 9 of the 10 factors compared between the two stocks.

About Veren

Veren Inc. explores, develops, and produces oil and gas properties in Canada and the United States. The company focuses on crude oil, tight oil, natural gas liquids, shale gas, and natural gas reserves. Its properties are located in the provinces of Saskatchewan, Alberta, British Columbia, and Manitoba; and the states of North Dakota. The company was formerly known as Crescent Point Energy Corp. and changed its name to Veren Inc. in May 2024. Veren Inc. was incorporated in 1994 and is headquartered in Calgary, Canada.

About Legacy Reserves

Legacy Reserves Inc., an independent energy company, engages in the acquisition, development, and production of oil and natural gas properties in the United States. It focuses on the horizontal development of unconventional plays in the Permian Basin and the management of shallow-decline oil and natural gas wells in the regions of Permian Basin, East Texas, Rocky Mountain, and Mid-Continent. As of December 31, 2018, the company had proved reserves of approximately 164.9 million barrels of crude oil equivalent covering natural gas, as well as oil and natural gas liquids. Legacy Reserves Inc. was founded in 2005 and is based in Midland, Texas. On June 18, 2019, Legacy Reserves Inc., along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas.