Baytex Energy (NYSE:BTE – Get Free Report) and Paramount Resources (OTCMKTS:PRMRF – Get Free Report) are both mid-cap energy companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, profitability, valuation and risk.
Risk & Volatility
Baytex Energy has a beta of 0.39, suggesting that its share price is 61% less volatile than the S&P 500. Comparatively, Paramount Resources has a beta of 0.64, suggesting that its share price is 36% less volatile than the S&P 500.
Institutional and Insider Ownership
46.2% of Baytex Energy shares are held by institutional investors. Comparatively, 4.1% of Paramount Resources shares are held by institutional investors. 0.8% of Baytex Energy shares are held by insiders. Comparatively, 36.3% of Paramount Resources shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Dividends
Earnings & Valuation
This table compares Baytex Energy and Paramount Resources”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Baytex Energy | $1.68 billion | 2.09 | -$432.12 million | ($0.70) | -6.86 |
| Paramount Resources | $692.73 million | 4.47 | $922.32 million | $6.09 | 3.51 |
Paramount Resources has lower revenue, but higher earnings than Baytex Energy. Baytex Energy is trading at a lower price-to-earnings ratio than Paramount Resources, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Baytex Energy and Paramount Resources’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Baytex Energy | -24.25% | -9.78% | -5.63% |
| Paramount Resources | 149.02% | 1.53% | 1.15% |
Analyst Recommendations
This is a summary of current ratings and price targets for Baytex Energy and Paramount Resources, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Baytex Energy | 1 | 5 | 3 | 1 | 2.40 |
| Paramount Resources | 0 | 3 | 4 | 1 | 2.75 |
Summary
Paramount Resources beats Baytex Energy on 12 of the 15 factors compared between the two stocks.
About Baytex Energy
Baytex Energy Corp. is an oil & gas exploration and production company. The firm engages in the acquisition, development and production of crude oil and natural gas in the Western Canadian Sedimentary Basin and in the Eagle Ford in the United States. The company was founded on June 3, 1993 and is headquartered in Calgary, Canada.
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.
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