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

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

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%

Insider and Institutional Ownership

89.4% of Talos Energy shares are held by institutional investors. 61.1% of PrimeEnergy Resources shares are held by insiders. Comparatively, 0.8% of Talos Energy shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

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

Analyst Ratings

This is a breakdown of current ratings and recommmendations 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 94.64%. Given Talos Energy’s higher probable upside, analysts clearly believe Talos Energy is more favorable than PrimeEnergy Resources.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
PrimeEnergy Resources	$178.34 million	1.40	$28.10 million	$14.64	9.52
Talos Energy	$1.46 billion	1.26	$187.33 million	$0.07	145.57

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.

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.