Talos Energy (NYSE:TALO) and Chord Energy (NASDAQ:CHRD) Critical Analysis

Talos Energy (NYSE:TALO) and Chord Energy (NASDAQ:CHRD) 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.

Insider & Institutional Ownership

89.3% of Talos Energy shares are owned by institutional investors. Comparatively, 97.8% of Chord Energy shares are owned by institutional investors. 0.8% of Talos Energy shares are owned by insiders. Comparatively, 0.7% of Chord Energy 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.

Risk & Volatility

Talos Energy has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500. Comparatively, Chord Energy has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500.

Earnings & Valuation

This table compares Talos Energy and Chord Energy”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Talos Energy	$1.97 billion	0.69	$187.33 million	($0.51)	-14.92
Chord Energy	$5.25 billion	1.08	$1.02 billion	$15.94	5.96

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

Profitability

This table compares Talos Energy and Chord Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Talos Energy	3.95%	-1.98%	-0.86%
Chord Energy	19.74%	12.88%	8.91%

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Talos Energy	0	2	7	0	2.78
Chord Energy	1	2	9	1	2.77

Talos Energy presently has a consensus target price of $15.33, suggesting a potential upside of 101.49%. Chord Energy has a consensus target price of $160.31, suggesting a potential upside of 68.76%. Given Talos Energy’s stronger consensus rating and higher possible upside, analysts clearly believe Talos Energy is more favorable than Chord Energy.

Summary

Chord Energy beats Talos Energy on 10 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 Chord Energy

Chord Energy Corporation operates as an independent exploration and production company in the United States. It acquires, explores, develops, and produces crude oil, natural gas, and natural gas liquids in the Williston Basin. The company sells its products to refiners, marketers, and other purchasers that have access to nearby pipeline and rail facilities. The company was formerly known as Oasis Petroleum Inc. and changed its name to Chord Energy Corporation in July 2022. Chord Energy Corporation was founded in 2007 and is headquartered in Houston, Texas.