Paramount Resources (OTCMKTS:PRMRF) and Tourmaline Oil (OTCMKTS:TRMLF) Head-To-Head Analysis

Paramount Resources (OTCMKTS:PRMRF) and Tourmaline Oil (OTCMKTS:TRMLF) are both energy companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, valuation, dividends, risk, profitability and institutional ownership.

Dividends

Paramount Resources pays an annual dividend of $0.44 per share and has a dividend yield of 2.7%. Tourmaline Oil pays an annual dividend of $1.46 per share and has a dividend yield of 3.3%. Paramount Resources pays out 6.3% of its earnings in the form of a dividend. Tourmaline Oil pays out 50.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Analyst Recommendations

This is a breakdown of recent ratings for Paramount Resources and Tourmaline Oil, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Paramount Resources	0	3	0	0	2.00
Tourmaline Oil	2	3	2	0	2.00

Volatility and Risk

Paramount Resources has a beta of 1.31, suggesting that its share price is 31% more volatile than the S&P 500. Comparatively, Tourmaline Oil has a beta of -0.31, suggesting that its share price is 131% less volatile than the S&P 500.

Earnings & Valuation

This table compares Paramount Resources and Tourmaline Oil”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Paramount Resources	$1.28 billion	1.82	$245.14 million	$7.01	2.33
Tourmaline Oil	$4.41 billion	3.89	$922.55 million	$2.88	15.38

Tourmaline Oil has higher revenue and earnings than Paramount Resources. Paramount Resources is trading at a lower price-to-earnings ratio than Tourmaline Oil, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Paramount Resources and Tourmaline Oil’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Paramount Resources	111.48%	7.24%	5.56%
Tourmaline Oil	23.53%	9.90%	6.88%

Insider & Institutional Ownership

4.1% of Paramount Resources shares are held by institutional investors. Comparatively, 1.8% of Tourmaline Oil shares are held by institutional investors. 36.3% of Paramount Resources shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Tourmaline Oil beats Paramount Resources on 8 of the 14 factors compared between the two stocks.

About Paramount Resources

Paramount Resources Ltd. explores for and develops conventional and unconventional petroleum and natural gas reserves and resources in Canada. The company holds interests in the Karr and Wapiti Montney properties covering an area of 109,000 net acres located south of the city of Grande Prairie, Alberta; Kaybob North Duvernay development and natural gas producing properties covering an area of 124,000 net acres located in west-central Alberta; and Willesden Green Duvernay development in central Alberta and shale gas producing properties in the Horn River Basin in northeast British Columbia covering an area of 249,000 net acres. The company was founded in 1976 and is based in Calgary, Canada.

About Tourmaline Oil

Tourmaline Oil Corp. explores for and develops oil and natural gas properties in the Western Canadian Sedimentary Basin. The company holds interests in properties located in the Alberta Deep Basin, Northeast British Columbia Montney, and the Peace River High Triassic oil complex. Tourmaline Oil Corp. was incorporated in 2008 and is headquartered in Calgary, Canada.