Analyzing Tamboran Resources (NYSE:TBN) and Shell (NYSE:SHEL)

Tamboran Resources (NYSE:TBN) and Shell (NYSE:SHEL) are both energy companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.

Insider and Institutional Ownership

28.6% of Shell shares are owned by institutional investors. 5.3% of Tamboran Resources shares are owned by insiders. Comparatively, 1.0% of Shell shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Tamboran Resources and Shell”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tamboran Resources	N/A	N/A	-$36.90 million	($2.52)	-10.28
Shell	$289.03 billion	0.73	$16.09 billion	$4.44	16.20

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

Risk and Volatility

Tamboran Resources has a beta of 0.32, indicating that its stock price is 68% less volatile than the S&P 500. Comparatively, Shell has a beta of 0.39, indicating that its stock price is 61% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for Tamboran Resources and Shell, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tamboran Resources	1	1	3	1	2.67
Shell	0	8	9	2	2.68

Tamboran Resources currently has a consensus target price of $34.75, indicating a potential upside of 34.09%. Shell has a consensus target price of $79.71, indicating a potential upside of 10.82%. Given Tamboran Resources’ higher probable upside, equities research analysts clearly believe Tamboran Resources is more favorable than Shell.

Profitability

This table compares Tamboran Resources and Shell’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tamboran Resources	N/A	-7.31%	-6.28%
Shell	4.93%	10.67%	5.02%

Summary

Shell beats Tamboran Resources on 12 of the 14 factors compared between the two stocks.

About Tamboran Resources

Tamboran Resources Corporation, a natural gas company, focuses on developing unconventional gas resources in the northern territory of Australia. Its assets include a 25% non-operated working interest in EP 161; a 38.75% working interest in EPs 76, 98, and 117; and a 100% working interest in EPs 136 and 143, as well as EP (A) 197, located in the Betaloo Basin. Tamboran Resources Corporation was founded in 2009 and is headquartered in Sydney, Australia.

About Shell

Shell plc operates as an energy and petrochemical company Europe, Asia, Oceania, Africa, the United States, and Rest of the Americas. The company operates through Integrated Gas, Upstream, Marketing, Chemicals and Products, and Renewables and Energy Solutions segments. It explores for and extracts crude oil, natural gas, and natural gas liquids; markets and transports oil and gas; produces gas-to-liquids fuels and other products; and operates upstream and midstream infrastructure to deliver gas to market. The company also markets and trades natural gas, liquefied natural gas (LNG), crude oil, electricity, carbon-emission rights; and markets and sells LNG as a fuel for heavy-duty vehicles. In addition, it trades in and refines crude oil and other feed stocks, such as low-carbon fuels, lubricants, bitumen, sulphur, gasoline, diesel, aviation fuel, and marine fuel; produces and sells petrochemicals for industrial use; and manages oil sands activities. Further, the company produces base chemicals comprising ethylene, propylene, and aromatics, as well as intermediate chemicals, such as styrene monomer, propylene oxide, solvents, detergent alcohols, ethylene oxide, and ethylene glycol. Additionally, it generates electricity through wind and solar resources; produces and sells hydrogen; and provides electric vehicle charging services. The company was formerly known as Royal Dutch Shell plc and changed its name to Shell plc in January 2022. Shell plc was founded in 1907 and is headquartered in London, the United Kingdom.