Financial Contrast: Baytex Energy (OTCMKTS:BTEGF) versus Golar LNG (NASDAQ:GLNG)

Baytex Energy (OTCMKTS:BTEGF) and Golar LNG (NASDAQ:GLNG) are both mid-cap energy companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, risk, dividends, institutional ownership, profitability, valuation and analyst recommendations.

Earnings & Valuation

This table compares Baytex Energy and Golar LNG”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Baytex Energy	$2.79 billion	0.94	$1.29 billion	$1.47	3.29
Golar LNG	$393.52 million	13.22	$65.68 million	$1.60	32.10

Baytex Energy has higher revenue and earnings than Golar LNG. Baytex Energy is trading at a lower price-to-earnings ratio than Golar LNG, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Baytex Energy and Golar LNG’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Baytex Energy	38.28%	40.85%	20.18%
Golar LNG	31.27%	8.91%	3.75%

Risk and Volatility

Baytex Energy has a beta of 2.16, suggesting that its share price is 116% more volatile than the S&P 500. Comparatively, Golar LNG has a beta of 0.05, suggesting that its share price is 95% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for Baytex Energy and Golar LNG, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Baytex Energy	0	2	1	0	2.33
Golar LNG	0	2	4	1	2.86

Golar LNG has a consensus price target of $63.00, indicating a potential upside of 22.66%. Given Golar LNG’s stronger consensus rating and higher probable upside, analysts plainly believe Golar LNG is more favorable than Baytex Energy.

Institutional and Insider Ownership

92.2% of Golar LNG shares are held by institutional investors. 0.8% of Baytex Energy shares are held by company insiders. Comparatively, 0.0% of Golar LNG shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Golar LNG beats Baytex Energy on 8 of the 15 factors compared between the two stocks.

About Baytex Energy

Baytex Energy Corp. operates as an oil & gas exploration and production company. It engages in the acquisition, development and production of crude oil and natural gas in the Western Canadian Sedimentary Basin and in the Eagle Ford in the United States. The company was founded in 1993 and is headquartered in Calgary, Canada.

About Golar LNG

Golar LNG Limited designs, converts, owns, and operates marine infrastructure for the liquefaction of natural gas. The company operates through three segments: FLNG, Corporate and Other, and Shipping. It engages in the regasification, storage, and offloading of liquefied natural gas (LNG); operation of floating liquefaction natural gas (FLNG) vessels or projects; transportation of LNG carriers; and vessel management activities. Golar LNG Limited was founded in 1946 and is headquartered in Hamilton, Bermuda.