APA (NASDAQ:APA – Get Free Report) and Toro (NASDAQ:TORO – Get Free Report) are both energy companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, analyst recommendations, institutional ownership, valuation, risk and profitability.
Valuation & Earnings
This table compares APA and Toro”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| APA | $9.22 billion | 1.86 | $1.43 billion | $4.73 | 10.32 |
| Toro | $24.40 million | 3.82 | $5.93 million | ($0.11) | -39.45 |
APA has higher revenue and earnings than Toro. Toro is trading at a lower price-to-earnings ratio than APA, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
APA has a beta of 0.42, suggesting that its share price is 58% less volatile than the S&P 500. Comparatively, Toro has a beta of 2.59, suggesting that its share price is 159% more volatile than the S&P 500.
Profitability
This table compares APA and Toro’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| APA | 19.48% | 24.84% | 10.15% |
| Toro | 16.42% | 2.04% | 1.17% |
Analyst Ratings
This is a breakdown of recent ratings and target prices for APA and Toro, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| APA | 4 | 15 | 11 | 1 | 2.29 |
| Toro | 0 | 1 | 0 | 0 | 2.00 |
APA currently has a consensus price target of $44.76, indicating a potential downside of 8.32%. Given APA’s stronger consensus rating and higher possible upside, analysts clearly believe APA is more favorable than Toro.
Insider & Institutional Ownership
83.0% of APA shares are held by institutional investors. Comparatively, 1.7% of Toro shares are held by institutional investors. 0.7% of APA shares are held by company 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.
Summary
APA beats Toro on 13 of the 15 factors compared between the two stocks.
About APA
APA Corporation, an independent energy company, explores for, develops, and produces natural gas, crude oil, and natural gas liquids. It has oil and gas operations in the United States, Egypt, and North Sea. The company also has exploration and appraisal activities in Suriname, as well as holds interests in projects located in Uruguay and internationally. APA Corporation was incorporated in 1954 and is headquartered in Houston, Texas.
About Toro
Toro Corp., a shipping company, acquires, owns, charters, and operates oceangoing tanker vessels and provides seaborne transportation services for crude oil LPG, and refined petroleum products worldwide. The company operates in three segments: Aframax/LR2 Tanker, Handysize Tanker, and LPG Carrier. As of December 31, 2023, it operated a fleet of one Handysize tanker vessel; one Aframax/LR2 vessel; and four LPG carrier vessels with an aggregate cargo carrying capacity of 0.1 million deadweight ton. Toro Corp. was incorporated in 2022 and is based in Limassol, Cyprus.
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