Analyzing Talos Energy (NYSE:TALO) & Chord Energy (NASDAQ:CHRD)

Chord Energy (NASDAQ:CHRD) and Talos Energy (NYSE:TALO) are both energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, earnings, risk and analyst recommendations.

Profitability

This table compares Chord Energy and Talos Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Chord Energy	19.74%	12.88%	8.91%
Talos Energy	3.95%	-1.98%	-0.86%

Valuation & Earnings

This table compares Chord Energy and Talos Energy”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Chord Energy	$5.25 billion	1.00	$1.02 billion	$15.94	5.55
Talos Energy	$1.97 billion	0.63	$187.33 million	($0.51)	-13.58

Chord Energy has higher revenue and earnings than Talos Energy. Talos Energy is trading at a lower price-to-earnings ratio than Chord Energy, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Chord Energy has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500. Comparatively, Talos Energy has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for Chord Energy and Talos Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Chord Energy	1	2	9	1	2.77
Talos Energy	0	2	7	0	2.78

Chord Energy currently has a consensus price target of $157.00, suggesting a potential upside of 77.60%. Talos Energy has a consensus price target of $15.33, suggesting a potential upside of 121.39%. Given Talos Energy’s stronger consensus rating and higher probable upside, analysts plainly believe Talos Energy is more favorable than Chord Energy.

Insider and Institutional Ownership

97.8% of Chord Energy shares are owned by institutional investors. Comparatively, 89.3% of Talos Energy shares are owned by institutional investors. 0.7% of Chord Energy shares are owned by insiders. Comparatively, 0.8% of Talos Energy shares are owned 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.

Summary

Chord Energy beats Talos Energy on 10 of the 15 factors compared between the two stocks.

About Chord Energy

Chord Energy Corporation operates as an independent exploration and production company in the United States. It acquires, explores, develops, and produces crude oil, natural gas, and natural gas liquids in the Williston Basin. The company sells its products to refiners, marketers, and other purchasers that have access to nearby pipeline and rail facilities. The company was formerly known as Oasis Petroleum Inc. and changed its name to Chord Energy Corporation in July 2022. Chord Energy Corporation was founded in 2007 and is headquartered in Houston, Texas.

About Talos Energy

Talos Energy Inc., through its subsidiaries, engages in the exploration and production of oil, natural gas, and natural gas liquids in the United States and Mexico. It also engages in the development of carbon capture and sequestration. Talos Energy Inc. was founded in 2011 and is headquartered in Houston, Texas.