SFL (NYSE:SFL – Get Free Report) and Talos Energy (NYSE:TALO – Get Free Report) are both energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, valuation, analyst recommendations, dividends, earnings and profitability.
Institutional and Insider Ownership
28.6% of SFL shares are held by institutional investors. Comparatively, 89.3% of Talos Energy shares are held by institutional investors. 0.5% of Talos Energy shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Profitability
This table compares SFL and Talos Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SFL | 12.30% | 6.26% | 1.73% |
| Talos Energy | -18.36% | 4.42% | 1.61% |
Earnings and Valuation
This table compares SFL and Talos Energy”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SFL | $733.04 million | 2.12 | -$26.43 million | $0.67 | 16.02 |
| Talos Energy | $1.78 billion | 1.39 | -$494.29 million | ($2.32) | -6.41 |
SFL has higher earnings, but lower revenue than Talos Energy. Talos Energy is trading at a lower price-to-earnings ratio than SFL, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
SFL has a beta of 0.48, suggesting that its stock price is 52% less volatile than the S&P 500. Comparatively, Talos Energy has a beta of 0.45, suggesting that its stock price is 55% less volatile than the S&P 500.
Analyst Ratings
This is a summary of current ratings and recommmendations for SFL and Talos Energy, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SFL | 0 | 1 | 2 | 0 | 2.67 |
| Talos Energy | 1 | 4 | 5 | 0 | 2.40 |
SFL currently has a consensus price target of $14.00, indicating a potential upside of 30.41%. Talos Energy has a consensus price target of $19.71, indicating a potential upside of 32.58%. Given Talos Energy’s higher possible upside, analysts plainly believe Talos Energy is more favorable than SFL.
Summary
SFL beats Talos Energy on 9 of the 14 factors compared between the two stocks.
About SFL
SFL Corporation Ltd. is an international ship-owning and maritime transportation company that acquires and charters vessels and offshore assets. Its fleet has included crude oil and product tankers, dry bulk carriers, container ships, car carriers and drilling units. The company earns revenue primarily by chartering its assets to shipping and energy customers, often under long-term agreements. Its vessels serve global trade routes, transporting commodities, cargo and vehicles between markets around the world.
About Talos Energy
Talos Energy is an independent energy company focused on the exploration, development and production of oil and natural gas from offshore properties. Its operations have centered on the U.S. Gulf of Mexico and offshore Mexico. Founded in 2012, Talos became a publicly traded company through its 2018 merger with Stone Energy. The company has expanded its offshore portfolio through acquisitions, including its 2023 acquisition of EnVen Energy. Talos is headquartered in Houston, Texas. Timothy S. Duncan, one of the company’s founders, serves as its president and chief executive officer.
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