Granite Ridge Resources (NYSE:GRNT – Get Free Report) and Talos Energy (NYSE:TALO – 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 risk, earnings, profitability, dividends, valuation, analyst recommendations and institutional ownership.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Granite Ridge Resources and Talos Energy, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Granite Ridge Resources | 1 | 1 | 1 | 0 | 2.00 |
| Talos Energy | 1 | 4 | 3 | 0 | 2.25 |
Granite Ridge Resources presently has a consensus target price of $11.00, indicating a potential upside of 98.99%. Talos Energy has a consensus target price of $17.50, indicating a potential upside of 8.87%. Given Granite Ridge Resources’ higher probable upside, equities research analysts clearly believe Granite Ridge Resources is more favorable than Talos Energy.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Granite Ridge Resources | -7.13% | 4.99% | 2.65% |
| Talos Energy | -42.58% | -8.24% | -3.28% |
Institutional & Insider Ownership
31.6% of Granite Ridge Resources shares are held by institutional investors. Comparatively, 89.4% of Talos Energy shares are held by institutional investors. 8.4% of Granite Ridge Resources shares are held by company insiders. Comparatively, 0.4% of Talos Energy shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares Granite Ridge Resources and Talos Energy”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Granite Ridge Resources | $450.31 million | 1.62 | $24.35 million | ($0.25) | -22.11 |
| Talos Energy | $1.78 billion | 1.51 | -$494.29 million | ($4.31) | -3.73 |
Granite Ridge Resources has higher earnings, but lower revenue than Talos Energy. Granite Ridge Resources is trading at a lower price-to-earnings ratio than Talos Energy, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Granite Ridge Resources has a beta of 0.26, meaning that its stock price is 74% less volatile than the S&P 500. Comparatively, Talos Energy has a beta of 0.35, meaning that its stock price is 65% less volatile than the S&P 500.
Summary
Granite Ridge Resources beats Talos Energy on 8 of the 14 factors compared between the two stocks.
About Granite Ridge Resources
Granite Ridge Resources, Inc. operates as a non-operated oil and gas exploration and production company. It owns a portfolio of wells and acreage across the Permian and other unconventional basins in the United States. Granite Ridge Resources, Inc. is based in Dallas, Texas.
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.
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