Head-To-Head Comparison: Talos Energy (NYSE:TALO) versus Natural Resource Partners (NYSE:NRP)

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

Analyst Ratings

This is a summary of recent ratings and target prices for Natural Resource Partners and Talos Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Natural Resource Partners	0	1	0	0	2.00
Talos Energy	1	3	5	1	2.60

Talos Energy has a consensus price target of $19.00, indicating a potential upside of 13.24%. Given Talos Energy’s stronger consensus rating and higher probable upside, analysts clearly believe Talos Energy is more favorable than Natural Resource Partners.

Insider and Institutional Ownership

31.8% of Natural Resource Partners shares are owned by institutional investors. Comparatively, 89.3% of Talos Energy shares are owned by institutional investors. 35.3% of Natural Resource Partners shares are owned by company insiders. Comparatively, 0.5% of Talos Energy shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Natural Resource Partners and Talos Energy”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Natural Resource Partners	$207.28 million	7.00	$136.37 million	$7.84	13.97
Talos Energy	$1.78 billion	1.57	-$494.29 million	($2.38)	-7.05

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

Volatility and Risk

Natural Resource Partners has a beta of 0.24, suggesting that its share price is 76% less volatile than the S&P 500. Comparatively, Talos Energy has a beta of 0.42, suggesting that its share price is 58% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Natural Resource Partners	57.13%	16.65%	13.88%
Talos Energy	-20.46%	-1.94%	-0.75%

Summary

Natural Resource Partners beats Talos Energy on 8 of the 15 factors compared between the two stocks.

About Natural Resource Partners

Natural Resource Partners L.P., together with its subsidiaries, owns, manages, and leases a portfolio of mineral properties in the United States. It operates in two segments, Mineral Rights and Soda Ash. The company owns interests in coal, soda ash, trona, and other natural resources. Its coal reserves are primarily located in the Appalachia Basin, the Illinois Basin, and the Northern Powder River Basin in the United States; industrial minerals and aggregates properties located in the United States; and oil and gas properties located in Louisiana. The company leases a portion of its reserves in exchange for royalty payments; and owns and leases transportation and processing infrastructure related to coal properties. NRP (GP) LP serves as the general partner of the company. Natural Resource Partners L.P. was incorporated in 2002 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.