Talos Energy (NYSE:TALO – Get Free Report) and Sunoco (TXSE:SUN – Get Free Report) are both energy companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, earnings, profitability and dividends.
Risk and Volatility
Talos Energy has a beta of 0.45, suggesting that its stock price is 55% less volatile than the S&P 500. Comparatively, Sunoco has a beta of 0.42, suggesting that its stock price is 58% less volatile than the S&P 500.
Institutional & Insider Ownership
89.3% of Talos Energy shares are held by institutional investors. Comparatively, 24.3% of Sunoco shares are held by institutional investors. 0.5% of Talos Energy shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares Talos Energy and Sunoco’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Talos Energy | -18.36% | 4.42% | 1.61% |
| Sunoco | 2.88% | 18.78% | 4.29% |
Analyst Recommendations
This is a summary of recent ratings and price targets for Talos Energy and Sunoco, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Talos Energy | 1 | 4 | 5 | 0 | 2.40 |
| Sunoco | 0 | 1 | 8 | 1 | 3.00 |
Talos Energy currently has a consensus target price of $19.71, suggesting a potential upside of 33.84%. Sunoco has a consensus target price of $80.12, suggesting a potential upside of 29.82%. Given Talos Energy’s higher probable upside, equities analysts clearly believe Talos Energy is more favorable than Sunoco.
Valuation and Earnings
This table compares Talos Energy and Sunoco”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Talos Energy | $1.78 billion | 1.38 | -$494.29 million | ($2.32) | -6.35 |
| Sunoco | $39.58 billion | 0.32 | $527.00 million | $5.95 | 10.37 |
Sunoco has higher revenue and earnings than Talos Energy. Talos Energy is trading at a lower price-to-earnings ratio than Sunoco, indicating that it is currently the more affordable of the two stocks.
Summary
Sunoco beats Talos Energy on 10 of the 15 factors compared between the two stocks.
About Talos Energy
Talos Energy Inc., through its subsidiaries, engages in the exploration and production of oil, natural gas, and natural gas liquids in the United States and Mexico. It also engages in the development of carbon capture and sequestration. Talos Energy Inc. was founded in 2011 and is headquartered in Houston, Texas.
About Sunoco
Sunoco LP, together with its subsidiaries, distributes and retails motor fuels in the United States. It operates through two segments: Fuel Distribution and Marketing, and All Other. The Fuel Distribution and Marketing segment purchases motor fuel, as well as other petroleum products, such as propane and lubricating oil from independent refiners and oil companies and supplies it to company-operated retail stores, independently operated commission agents, and retail stores, as well as other commercial customers, including unbranded retail stores, other fuel distributors, school districts, municipalities, and other industrial customers. It owns and operates retail stores under the APlus and Aloha Island Mart brand names; and offers food, beverages, snacks, grocery and non-food merchandise, motor fuels, and other services. The All Other segment includes partnership credit card services, franchise royalties, and retail operations; and offers credit card processing, car washes, lottery, automated teller machines, money order, prepaid phone cards, and wireless services. The company was formerly known as Susser Petroleum Partners LP and changed its name to Sunoco LP in 2014. Sunoco LP was founded in 1886 and is headquartered in Dallas, Texas.
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