Contrasting Par Pacific (NYSE:PARR) and Talos Energy (NYSE:TALO)

Par Pacific (NYSE:PARR) and Talos Energy (NYSE:TALO) are both mid-cap energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, earnings, valuation, analyst recommendations, dividends, profitability and risk.

Risk & Volatility

Par Pacific has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500. Comparatively, Talos Energy has a beta of 0.42, suggesting that its stock price is 58% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Par Pacific	9.94%	56.19%	21.61%
Talos Energy	-20.46%	-1.94%	-0.75%

Insider & Institutional Ownership

92.2% of Par Pacific shares are held by institutional investors. Comparatively, 89.3% of Talos Energy shares are held by institutional investors. 3.6% of Par Pacific shares are held by company insiders. Comparatively, 0.5% of Talos Energy shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Par Pacific and Talos Energy”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Par Pacific	$7.46 billion	0.51	$369.39 million	$17.14	4.45
Talos Energy	$1.98 billion	1.54	-$494.29 million	($2.38)	-7.68

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

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Par Pacific and Talos Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Par Pacific	0	4	8	1	2.77
Talos Energy	1	4	5	0	2.40

Par Pacific presently has a consensus price target of $90.43, indicating a potential upside of 18.67%. Talos Energy has a consensus price target of $19.71, indicating a potential upside of 7.91%. Given Par Pacific’s stronger consensus rating and higher probable upside, equities analysts clearly believe Par Pacific is more favorable than Talos Energy.

Summary

Par Pacific beats Talos Energy on 14 of the 15 factors compared between the two stocks.

About Par Pacific

Par Pacific Holdings, Inc. owns and operates energy and infrastructure businesses. The company operates through Refining, Retail, and Logistics segments. The Refining segment owns and operates refineries that produce gasoline, distillate, asphalt, and other products primarily for consumption in Kapolei, Hawaii, Newcastle, Wyoming, Tacoma, Washington, and Billings, Montana. The Retail segment operates fuel retail outlets, which sell merchandise, such as soft drinks, prepared foods, and other sundries in Hawaii under the Hele, 76, and nomnom brands; and gasoline, diesel, and retail merchandise in Washington and Idaho. The Logistics segment owns and operates terminals, pipelines, single point mooring, marine vessels, storage facilities, loading and truck racks, and rail facilities to distribute ethanol, petroleum, and refined products throughout Hawaii, the United States West Coast, Washington, the Dakotas, and Wyoming; and a jet fuel storage facility and pipeline that serves Ellsworth Air Force Base in South Dakota. It also holds interest in refined products pipeline. In addition, the company owns and operates a marine terminal, a unit train-capable rail loading terminal; a truck rack, and a proprietary pipeline that serves Joint Base Lewis McChord. The company was formerly known as Par Petroleum Corporation and changed its name to Par Pacific Holdings, Inc. in October 2015. Par Pacific Holdings, Inc. was incorporated in 1984 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.