Par Pacific (NYSE:PARR – Get Free Report) and Freehold Royalties (OTCMKTS:FRHLF – Get Free Report) are both mid-cap energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, earnings, risk, profitability and dividends.
Profitability
This table compares Par Pacific and Freehold Royalties’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Par Pacific | 9.94% | 56.19% | 21.61% |
| Freehold Royalties | 43.59% | 13.90% | 10.09% |
Valuation and Earnings
This table compares Par Pacific and Freehold Royalties”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Par Pacific | $7.46 billion | 0.52 | $369.39 million | $17.14 | 4.50 |
| Freehold Royalties | $224.34 million | 9.23 | $65.69 million | $0.61 | 20.70 |
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.
Institutional and Insider Ownership
92.2% of Par Pacific shares are owned by institutional investors. 3.6% of Par Pacific shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Analyst Recommendations
This is a summary of current recommendations for Par Pacific and Freehold Royalties, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Par Pacific | 0 | 3 | 9 | 1 | 2.85 |
| Freehold Royalties | 0 | 5 | 0 | 0 | 2.00 |
Par Pacific currently has a consensus price target of $87.29, indicating a potential upside of 13.06%. Given Par Pacific’s stronger consensus rating and higher possible upside, analysts plainly 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 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.
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.
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