Analyzing Alto Ingredients (NASDAQ:ALTO) & Talos Energy (NYSE:TALO)

Talos Energy (NYSE:TALOGet Free Report) and Alto Ingredients (NASDAQ:ALTOGet Free Report) are both energy companies, but which is the better business? We will compare the two businesses based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, earnings, risk and dividends.

Institutional and Insider Ownership

89.3% of Talos Energy shares are owned by institutional investors. Comparatively, 42.4% of Alto Ingredients shares are owned by institutional investors. 0.5% of Talos Energy shares are owned by company insiders. Comparatively, 4.3% of Alto Ingredients shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for Talos Energy and Alto Ingredients, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Talos Energy 1 3 4 1 2.56
Alto Ingredients 0 2 1 0 2.33

Talos Energy presently has a consensus target price of $18.50, suggesting a potential upside of 7.22%. Alto Ingredients has a consensus target price of $10.00, suggesting a potential upside of 140.10%. Given Alto Ingredients’ higher probable upside, analysts clearly believe Alto Ingredients is more favorable than Talos Energy.

Valuation & Earnings

This table compares Talos Energy and Alto Ingredients”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Talos Energy $1.98 billion 1.46 -$494.29 million ($2.38) -7.25
Alto Ingredients $917.93 million 0.35 $13.34 million $0.67 6.22

Alto Ingredients has lower revenue, but higher earnings than Talos Energy. Talos Energy is trading at a lower price-to-earnings ratio than Alto Ingredients, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Talos Energy has a beta of 0.35, indicating that its stock price is 65% less volatile than the S&P 500. Comparatively, Alto Ingredients has a beta of 0.16, indicating that its stock price is 84% less volatile than the S&P 500.

Profitability

This table compares Talos Energy and Alto Ingredients’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Talos Energy -20.46% -1.94% -0.75%
Alto Ingredients 5.51% 18.54% 11.61%

Summary

Alto Ingredients beats Talos Energy on 8 of the 15 factors compared between the two stocks.

About Talos Energy

(Get Free Report)

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 Alto Ingredients

(Get Free Report)

Alto Ingredients, Inc. produces, distributes, and markets specialty alcohols, renewable fuel, and essential ingredients in the United States. The company operates in three segments: Marketing and Distribution, Pekin Campus Production, and Western Production. It offers specialty alcohols used in mouthwash, cosmetics, pharmaceuticals, hand sanitizers, disinfectants, and cleaners for health, home, and beauty markets; grain neutral spirits used in alcoholic beverages and vinegar, as well as corn germ used in corn oils in the food and beverage markets; alcohols and other products for paint applications and fertilizers in the industrial and agriculture markets; and essential ingredients include dried yeast, corn protein meal, corn protein feed, distiller's grains, and liquid feed for commercial animal feed and pet food applications, as well as yeast for human consumption. The company also provides fuel-grade ethanol used as transportation fuel and distillers corn oil used as a biodiesel feedstock, as well as fuel-grade ethanol produced by third parties. In addition, it offers transportation, storage, and delivery services through third-party service providers. The company sells ethanol to integrated oil companies and gasoline marketers; essential ingredient feed products to dairies and feedlots; and corn oil to poultry, renewable diesel, and biodiesel customers. It operates alcohol production facilities. The company was formerly known as Pacific Ethanol, Inc. and changed its name to Alto Ingredients, Inc. in January 2021. Alto Ingredients, Inc. was founded in 2003 and is headquartered in Pekin, Illinois.

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