Contrasting Natural Resource Partners (NYSE:NRP) and Talos Energy (NYSE:TALO)

Talos Energy (NYSE:TALO) and Natural Resource Partners (NYSE:NRP) are both energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, risk, earnings and valuation.

Profitability

This table compares Talos Energy and Natural Resource Partners’ 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%
Natural Resource Partners	57.13%	16.65%	13.88%

Risk & Volatility

Talos Energy has a beta of 0.42, suggesting that its share price is 58% less volatile than the S&P 500. Comparatively, Natural Resource Partners has a beta of 0.24, suggesting that its share price is 76% less volatile than the S&P 500.

Insider & Institutional Ownership

89.3% of Talos Energy shares are owned by institutional investors. Comparatively, 31.8% of Natural Resource Partners shares are owned by institutional investors. 0.5% of Talos Energy shares are owned by insiders. Comparatively, 35.3% of Natural Resource Partners shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Talos Energy and Natural Resource Partners”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Talos Energy	$1.78 billion	1.57	-$494.29 million	($2.38)	-7.05
Natural Resource Partners	$207.28 million	7.09	$136.37 million	$7.84	14.15

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

Analyst Recommendations

This is a summary of recent ratings for Talos Energy and Natural Resource Partners, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Talos Energy	1	3	5	1	2.60
Natural Resource Partners	0	1	0	0	2.00

Talos Energy presently has a consensus target price of $19.00, suggesting a potential upside of 13.26%. Given Talos Energy’s stronger consensus rating and higher possible upside, analysts clearly believe Talos Energy is more favorable than Natural Resource Partners.

Summary

Natural Resource Partners beats Talos Energy on 8 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 Natural Resource Partners

Natural Resource Partners L.P., together with its subsidiaries, owns, manages, and leases a portfolio of mineral properties in the United States. It operates in two segments, Mineral Rights and Soda Ash. The company owns interests in coal, soda ash, trona, and other natural resources. Its coal reserves are primarily located in the Appalachia Basin, the Illinois Basin, and the Northern Powder River Basin in the United States; industrial minerals and aggregates properties located in the United States; and oil and gas properties located in Louisiana. The company leases a portion of its reserves in exchange for royalty payments; and owns and leases transportation and processing infrastructure related to coal properties. NRP (GP) LP serves as the general partner of the company. Natural Resource Partners L.P. was incorporated in 2002 and is headquartered in Houston, Texas.