Baytex Energy (OTCMKTS:BTEGF – Get Free Report) and Star Group (NYSE:SGU – Get Free Report) are both energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, dividends, risk, valuation, earnings and institutional ownership.
Volatility and Risk
Baytex Energy has a beta of 2.16, suggesting that its share price is 116% more volatile than the S&P 500. Comparatively, Star Group has a beta of 0.34, suggesting that its share price is 66% less volatile than the S&P 500.
Profitability
This table compares Baytex Energy and Star Group’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% |
| Star Group | 4.57% | 24.43% | 8.39% |
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Baytex Energy | $2.79 billion | 0.95 | $1.29 billion | $1.47 | 3.31 |
| Star Group | $1.78 billion | 0.23 | $73.50 million | $1.87 | 6.80 |
Baytex Energy has higher revenue and earnings than Star Group. Baytex Energy is trading at a lower price-to-earnings ratio than Star Group, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current recommendations and price targets for Baytex Energy and Star Group, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Baytex Energy | 0 | 2 | 1 | 0 | 2.33 |
| Star Group | 0 | 1 | 0 | 0 | 2.00 |
Insider and Institutional Ownership
40.4% of Star Group shares are owned by institutional investors. 0.8% of Baytex Energy shares are owned by company insiders. Comparatively, 20.4% of Star Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Summary
Baytex Energy beats Star Group on 9 of the 13 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 Star Group
Star Group, L.P., together with its subsidiaries, provides home heating oil and propane products and services to residential and commercial customers in the United States. It offers gasoline and diesel fuel; and installs, maintain, and repairs heating and air conditioning equipment. As of September 30, 2023, the company served approximately 402,200 full service residential and commercial home heating oil and propane customers and 52,400 customers on a delivery only basis. It also sells gasoline and diesel fuel to approximately 26,600 customers. The company was formerly known as Star Gas Partners, L.P. and changed its name to Star Group, L.P. in October 2017. Star Group, L.P. was incorporated in 1995 and is based in Stamford, Connecticut.
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