Talos Energy (NYSE:TALO – Get Free Report) and Granite Ridge Resources (NYSE:GRNT – Get Free Report) are both energy companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, profitability, earnings, risk, institutional ownership and valuation.
Profitability
This table compares Talos Energy and Granite Ridge Resources’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Talos Energy | -42.58% | -8.24% | -3.28% |
| Granite Ridge Resources | -7.13% | 4.99% | 2.65% |
Risk and Volatility
Talos Energy has a beta of 0.35, suggesting that its stock price is 65% less volatile than the S&P 500. Comparatively, Granite Ridge Resources has a beta of 0.26, suggesting that its stock price is 74% less volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Talos Energy | 1 | 4 | 3 | 0 | 2.25 |
| Granite Ridge Resources | 0 | 2 | 1 | 0 | 2.33 |
Talos Energy currently has a consensus price target of $17.50, suggesting a potential upside of 8.87%. Granite Ridge Resources has a consensus price target of $11.00, suggesting a potential upside of 98.99%. Given Granite Ridge Resources’ stronger consensus rating and higher possible upside, analysts clearly believe Granite Ridge Resources is more favorable than Talos Energy.
Institutional and Insider Ownership
89.4% of Talos Energy shares are held by institutional investors. Comparatively, 31.6% of Granite Ridge Resources shares are held by institutional investors. 0.4% of Talos Energy shares are held by company insiders. Comparatively, 8.4% of Granite Ridge Resources shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares Talos Energy and Granite Ridge Resources”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 | 1.51 | -$494.29 million | ($4.31) | -3.73 |
| Granite Ridge Resources | $450.31 million | 1.62 | $24.35 million | ($0.25) | -22.11 |
Granite Ridge Resources has lower revenue, but higher earnings than Talos Energy. Granite Ridge 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
Granite Ridge Resources beats Talos Energy on 9 of the 14 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 Granite Ridge Resources
Granite Ridge Resources, Inc. operates as a non-operated oil and gas exploration and production company. It owns a portfolio of wells and acreage across the Permian and other unconventional basins in the United States. Granite Ridge Resources, Inc. is based in Dallas, Texas.
Receive News & Ratings for Talos Energy Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Talos Energy and related companies with MarketBeat.com's FREE daily email newsletter.
