Head to Head Analysis: PrimeEnergy Resources (NASDAQ:PNRG) & Talos Energy (NYSE:TALO)

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

Insider & Institutional Ownership

89.3% of Talos Energy shares are owned by institutional investors. 61.1% of PrimeEnergy Resources shares are owned by company insiders. Comparatively, 0.8% of Talos Energy shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
PrimeEnergy Resources	26.67%	28.34%	15.76%
Talos Energy	-0.93%	-0.21%	-0.09%

Earnings and Valuation

This table compares PrimeEnergy Resources and Talos Energy”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PrimeEnergy Resources	$178.34 million	1.50	$28.10 million	$14.64	10.24
Talos Energy	$1.75 billion	1.21	$187.33 million	$0.07	164.86

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

Analyst Recommendations

This is a summary of current ratings and target prices for PrimeEnergy Resources and Talos Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
PrimeEnergy Resources	0	0	0	0	N/A
Talos Energy	0	0	9	0	3.00

Talos Energy has a consensus price target of $19.83, suggesting a potential upside of 69.52%. Given Talos Energy’s higher possible upside, analysts clearly believe Talos Energy is more favorable than PrimeEnergy Resources.

Volatility & Risk

PrimeEnergy Resources has a beta of 0.55, meaning that its stock price is 45% less volatile than the S&P 500. Comparatively, Talos Energy has a beta of 1.94, meaning that its stock price is 94% more volatile than the S&P 500.

Summary

Talos Energy beats PrimeEnergy Resources on 7 of the 13 factors compared between the two stocks.

About PrimeEnergy Resources

PrimeEnergy Resources Corporation, through its subsidiaries, engages in acquisition, development, and production of oil and natural gas properties in the United States. The company owns leasehold, mineral, and royalty interests in producing and non-producing oil and gas properties; and operates approximately 534 active wells and owns non-operating interests and royalties in 952 additional wells. It also acquires producing oil and gas properties through joint ventures with industry partners; and provides contract services to third parties, including well-servicing support, site-preparation, and construction services for oil and gas drilling and reworking operations. The company was formerly known as PrimeEnergy Corporation and changed its name to PrimeEnergy Resources Corporation in December 2018. PrimeEnergy Resources Corporation was incorporated in 1973 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.