Baytex Energy (NYSE:BTE – Get Free Report) and Tourmaline Oil (OTCMKTS:TRMLF – Get Free Report) are both energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, institutional ownership, earnings, risk, profitability, analyst recommendations and dividends.
Profitability
This table compares Baytex Energy and Tourmaline Oil’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Baytex Energy | -24.25% | -10.85% | -6.38% |
| Tourmaline Oil | 10.27% | 10.46% | 7.25% |
Earnings & Valuation
This table compares Baytex Energy and Tourmaline Oil”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Baytex Energy | $2.56 billion | 1.42 | -$432.12 million | ($0.70) | -7.08 |
| Tourmaline Oil | $4.72 billion | 3.94 | $187.99 million | $1.36 | 35.23 |
Tourmaline Oil has higher revenue and earnings than Baytex Energy. Baytex Energy is trading at a lower price-to-earnings ratio than Tourmaline Oil, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
46.2% of Baytex Energy shares are held by institutional investors. Comparatively, 1.8% of Tourmaline Oil shares are held by institutional investors. 0.8% of Baytex Energy shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Analyst Recommendations
This is a summary of recent ratings and price targets for Baytex Energy and Tourmaline Oil, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Baytex Energy | 1 | 5 | 3 | 1 | 2.40 |
| Tourmaline Oil | 0 | 6 | 3 | 2 | 2.64 |
Tourmaline Oil has a consensus price target of $65.00, indicating a potential upside of 35.66%. Given Tourmaline Oil’s stronger consensus rating and higher possible upside, analysts plainly believe Tourmaline Oil is more favorable than Baytex Energy.
Dividends
Baytex Energy pays an annual dividend of $0.07 per share and has a dividend yield of 1.4%. Tourmaline Oil pays an annual dividend of $1.47 per share and has a dividend yield of 3.1%. Baytex Energy pays out -10.0% of its earnings in the form of a dividend. Tourmaline Oil pays out 108.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Volatility & Risk
Baytex Energy has a beta of 0.39, meaning that its stock price is 61% less volatile than the S&P 500. Comparatively, Tourmaline Oil has a beta of -0.24, meaning that its stock price is 124% less volatile than the S&P 500.
Summary
Tourmaline Oil beats Baytex Energy on 12 of the 16 factors compared between the two stocks.
About Baytex Energy
Baytex Energy Corp. is an oil & gas exploration and production company. The firm engages in the acquisition, development and production of crude oil and natural gas in the Western Canadian Sedimentary Basin and in the Eagle Ford in the United States. The company was founded on June 3, 1993 and is headquartered in Calgary, Canada.
About Tourmaline Oil
Tourmaline Oil Corp. explores for and develops oil and natural gas properties in the Western Canadian Sedimentary Basin. The company holds interests in properties located in the Alberta Deep Basin, Northeast British Columbia Montney, and the Peace River High Triassic oil complex. Tourmaline Oil Corp. was incorporated in 2008 and is headquartered in Calgary, Canada.
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