Head-To-Head Review: Par Pacific (NYSE:PARR) vs. Freehold Royalties (OTCMKTS:FRHLF)

Freehold Royalties (OTCMKTS:FRHLF) and Par Pacific (NYSE:PARR) are both mid-cap energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, risk, earnings, dividends, valuation, profitability and analyst recommendations.

Valuation & Earnings

This table compares Freehold Royalties and Par Pacific”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Freehold Royalties	$224.34 million	9.23	$65.69 million	$0.61	20.70
Par Pacific	$7.46 billion	0.52	$369.39 million	$17.14	4.50

Par Pacific has higher revenue and earnings than Freehold Royalties. Par Pacific is trading at a lower price-to-earnings ratio than Freehold Royalties, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Freehold Royalties and Par Pacific’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Freehold Royalties	43.59%	13.90%	10.09%
Par Pacific	9.94%	56.19%	21.61%

Insider & Institutional Ownership

92.2% of Par Pacific shares are held by institutional investors. 3.6% of Par Pacific shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Freehold Royalties and Par Pacific, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Freehold Royalties	0	5	0	0	2.00
Par Pacific	0	3	9	1	2.85

Par Pacific has a consensus target price of $87.29, suggesting a potential upside of 13.06%. Given Par Pacific’s stronger consensus rating and higher possible upside, analysts clearly believe Par Pacific is more favorable than Freehold Royalties.

Summary

Par Pacific beats Freehold Royalties on 11 of the 14 factors compared between the two stocks.

About Freehold Royalties

Freehold Royalties Ltd. engages in the acquiring and managing royalty interests in the crude oil, natural gas, natural gas liquids, and potash properties in Western Canada and the United States. Freehold Royalties Ltd. was founded in 1996 and is headquartered in Calgary, Canada.

About Par Pacific

Par Pacific Holdings, Inc. owns and operates energy and infrastructure businesses. The company operates through Refining, Retail, and Logistics segments. The Refining segment owns and operates refineries that produce gasoline, distillate, asphalt, and other products primarily for consumption in Kapolei, Hawaii, Newcastle, Wyoming, Tacoma, Washington, and Billings, Montana. The Retail segment operates fuel retail outlets, which sell merchandise, such as soft drinks, prepared foods, and other sundries in Hawaii under the Hele, 76, and nomnom brands; and gasoline, diesel, and retail merchandise in Washington and Idaho. The Logistics segment owns and operates terminals, pipelines, single point mooring, marine vessels, storage facilities, loading and truck racks, and rail facilities to distribute ethanol, petroleum, and refined products throughout Hawaii, the United States West Coast, Washington, the Dakotas, and Wyoming; and a jet fuel storage facility and pipeline that serves Ellsworth Air Force Base in South Dakota. It also holds interest in refined products pipeline. In addition, the company owns and operates a marine terminal, a unit train-capable rail loading terminal; a truck rack, and a proprietary pipeline that serves Joint Base Lewis McChord. The company was formerly known as Par Petroleum Corporation and changed its name to Par Pacific Holdings, Inc. in October 2015. Par Pacific Holdings, Inc. was incorporated in 1984 and is headquartered in Houston, Texas.