Financial Contrast: Sunoco (NYSE:SUN) & Talos Energy (NYSE:TALO)

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

Volatility & Risk

Talos Energy has a beta of 0.42, suggesting that its stock price is 58% less volatile than the S&P 500. Comparatively, Sunoco has a beta of 0.43, suggesting that its stock price is 57% less volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Talos Energy	$1.78 billion	1.71	-$494.29 million	($2.38)	-7.68
Sunoco	$39.58 billion	0.37	$527.00 million	$4.52	15.67

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

Insider and Institutional Ownership

89.3% of Talos Energy shares are held by institutional investors. Comparatively, 24.3% of Sunoco shares are held by institutional investors. 0.5% of Talos Energy shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Talos Energy	-20.46%	-1.94%	-0.75%
Sunoco	2.88%	18.78%	4.29%

Analyst Recommendations

This is a summary of current recommendations and price targets for Talos Energy and Sunoco, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Talos Energy	1	4	5	0	2.40
Sunoco	0	1	8	1	3.00

Talos Energy presently has a consensus target price of $19.71, suggesting a potential upside of 7.91%. Sunoco has a consensus target price of $79.75, suggesting a potential upside of 12.58%. Given Sunoco’s stronger consensus rating and higher possible upside, analysts clearly believe Sunoco is more favorable than Talos Energy.

Summary

Sunoco beats Talos Energy on 12 of the 15 factors compared between the two stocks.

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.

About Sunoco

Sunoco LP, together with its subsidiaries, distributes and retails motor fuels in the United States. It operates through two segments: Fuel Distribution and Marketing, and All Other. The Fuel Distribution and Marketing segment purchases motor fuel, as well as other petroleum products, such as propane and lubricating oil from independent refiners and oil companies and supplies it to company-operated retail stores, independently operated commission agents, and retail stores, as well as other commercial customers, including unbranded retail stores, other fuel distributors, school districts, municipalities, and other industrial customers. It owns and operates retail stores under the APlus and Aloha Island Mart brand names; and offers food, beverages, snacks, grocery and non-food merchandise, motor fuels, and other services. The All Other segment includes partnership credit card services, franchise royalties, and retail operations; and offers credit card processing, car washes, lottery, automated teller machines, money order, prepaid phone cards, and wireless services. The company was formerly known as Susser Petroleum Partners LP and changed its name to Sunoco LP in 2014. Sunoco LP was founded in 1886 and is headquartered in Dallas, Texas.