Parsley Energy (NYSE: PE) and Transglobe Energy Corp (NASDAQ:TGA) are both oil & gas exploration and production – nec companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, dividends, earnings, valuation and risk.
Risk & Volatility
Parsley Energy has a beta of -0.05, suggesting that its share price is 105% less volatile than the S&P 500. Comparatively, Transglobe Energy Corp has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500.
This table compares Parsley Energy and Transglobe Energy Corp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Transglobe Energy Corp||-83.42%||-12.56%||-8.33%|
This is a breakdown of current recommendations and price targets for Parsley Energy and Transglobe Energy Corp, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Transglobe Energy Corp||0||1||2||0||2.67|
Parsley Energy currently has a consensus price target of $40.19, indicating a potential upside of 50.13%. Transglobe Energy Corp has a consensus price target of $3.50, indicating a potential upside of 133.33%. Given Transglobe Energy Corp’s higher possible upside, analysts plainly believe Transglobe Energy Corp is more favorable than Parsley Energy.
Institutional & Insider Ownership
78.5% of Parsley Energy shares are owned by institutional investors. Comparatively, 25.9% of Transglobe Energy Corp shares are owned by institutional investors. 15.5% of Parsley Energy shares are owned by insiders. Comparatively, 4.0% of Transglobe Energy Corp shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares Parsley Energy and Transglobe Energy Corp’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Parsley Energy||$457.77 million||18.39||-$74.18 million||$0.07||382.43|
|Transglobe Energy Corp||$122.36 million||0.89||-$87.66 million||($1.53)||-0.98|
Parsley Energy has higher revenue and earnings than Transglobe Energy Corp. Transglobe Energy Corp is trading at a lower price-to-earnings ratio than Parsley Energy, indicating that it is currently the more affordable of the two stocks.
Parsley Energy beats Transglobe Energy Corp on 11 of the 13 factors compared between the two stocks.
Parsley Energy Company Profile
Parsley Energy, Inc. is a holding company. The Company is an independent oil and natural gas company. The Company focuses on the acquisition, development and exploitation of unconventional oil and natural gas reserves in the Permian Basin. The Permian Basin is located in West Texas and Southeastern New Mexico and includes three primary sub-areas: the Midland Basin, the Central Basin Platform and the Delaware Basin. The Company’s properties are primarily located in the Midland and Delaware Basins, where it focuses on horizontal development drilling and target various stacked pay intervals in the Spraberry, Wolfcamp, Upper Pennsylvanian (Cline) and Atoka shales. As of December 31, 2016, it had an average working interest of 87% in 166 gross (146.7 net) horizontal wells, of which 151 gross (132.4 net) are in the Midland Basin. As of December 31, 2016, the Company operated seven horizontal rigs and three vertical drilling rigs.
Transglobe Energy Corp Company Profile
TransGlobe Energy Corporation is an oil exploration and production company. The Company’s activities are concentrated in the Arab Republic of Egypt (Egypt). The Company conducts its operations through the Arab Republic of Egypt segment. The Company is primarily engaged in oil exploration, development, production and the acquisition of properties. It holds interests in various production sharing concessions (PSC) in Eastern Desert Egypt and Western Desert Egypt. Its blocks in Eastern Desert Egypt include West Gharib, which covers approximately 34,860 acres; West Bakr, covering over 11,600 acres; North West (NW) Gharib, covering approximately 162,000 acres; South East (SE) Gharib, which covers over 125,650 acres, and South West (SW) Gharib, covering approximately 48,310 acres. Its blocks in the Western Desert Egypt include South Alamein, covering approximately 335,830 acres; South Ghazalat, covering over 465,300 acres, and North West (NW) Sitra, covering approximately 480,850 acres.
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