Teekay Tankers (NYSE:TNK – Get Free Report) and Talos Energy (NYSE:TALO – Get Free Report) are both mid-cap energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, valuation, risk, analyst recommendations and dividends.
Analyst Ratings
This is a summary of current recommendations and price targets for Teekay Tankers and Talos Energy, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Teekay Tankers | 1 | 3 | 3 | 0 | 2.29 |
| Talos Energy | 1 | 3 | 5 | 1 | 2.60 |
Teekay Tankers currently has a consensus target price of $77.00, suggesting a potential downside of 27.70%. Talos Energy has a consensus target price of $19.00, suggesting a potential upside of 8.34%. Given Talos Energy’s stronger consensus rating and higher probable upside, analysts plainly believe Talos Energy is more favorable than Teekay Tankers.
Risk & Volatility
Valuation and Earnings
This table compares Teekay Tankers and Talos Energy”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Teekay Tankers | $951.80 million | 3.87 | $351.19 million | $16.97 | 6.28 |
| Talos Energy | $1.78 billion | 1.64 | -$494.29 million | ($2.38) | -7.37 |
Teekay Tankers has higher earnings, but lower revenue than Talos Energy. Talos Energy is trading at a lower price-to-earnings ratio than Teekay Tankers, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
52.7% of Teekay Tankers shares are owned by institutional investors. Comparatively, 89.3% of Talos Energy shares are owned by institutional investors. 1.9% of Teekay Tankers shares are owned by insiders. Comparatively, 0.5% of Talos Energy shares are owned by 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 Teekay Tankers and Talos Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Teekay Tankers | 51.35% | 22.11% | 20.23% |
| Talos Energy | -20.46% | -1.94% | -0.75% |
Summary
Teekay Tankers beats Talos Energy on 8 of the 15 factors compared between the two stocks.
About Teekay Tankers
Teekay Tankers Ltd. provides crude oil and other marine transportation services to oil industries in Bermuda and internationally. The company offers voyage and time charter services; offshore ship-to-ship transfer services of commodities primarily crude oil and refined oil products; and tanker commercial and technical management services. It also engages management of vessels, procurement, and equipment rental businesses. Teekay Tankers Ltd. was incorporated in 2007 and is headquartered in Hamilton, Bermuda.
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.
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