Comparing Shell (NYSE:SHEL) and Parex Resources (OTCMKTS:PARXF)

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

Insider & Institutional Ownership

28.6% of Shell shares are owned by institutional investors. Comparatively, 33.4% of Parex Resources shares are owned by institutional investors. 1.0% of Shell shares are owned by company 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 Shell and Parex Resources”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shell	$273.73 billion	0.91	$17.84 billion	$9.06	9.76
Parex Resources	N/A	N/A	N/A	$0.46	38.43

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Shell	8.55%	14.34%	6.74%
Parex Resources	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent ratings for Shell and Parex Resources, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shell	0	14	5	0	2.26
Parex Resources	0	2	2	0	2.50

Shell presently has a consensus target price of $102.17, indicating a potential upside of 15.53%. Given Shell’s higher possible upside, analysts clearly believe Shell is more favorable than Parex Resources.

Summary

Shell beats Parex Resources on 8 of the 11 factors compared between the two stocks.

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.

About Parex Resources

Parex Resources Inc. engages in the exploration, development, production, and marketing of oil and natural gas in Colombia. The company's principal land holdings and exploration blocks are in Colombia Llanos and Magdalena Basin. It has 55% working interest in Block LLA-34; 100% working interest in Cabrestero Block; and 50% working interest in Capachos Block and Block VIM-1. The company was incorporated in 2009 and is headquartered in Calgary, Canada.