Comparing Teekay Tankers (NYSE:TNK) & Par Pacific (NYSE:PARR)

Teekay Tankers (NYSE:TNK) and Par Pacific (NYSE:PARR) are both mid-cap energy companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, profitability, risk, earnings, analyst recommendations, dividends and valuation.

Institutional and Insider Ownership

52.7% of Teekay Tankers shares are held by institutional investors. Comparatively, 92.2% of Par Pacific shares are held by institutional investors. 1.9% of Teekay Tankers shares are held by insiders. Comparatively, 3.6% of Par Pacific shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Teekay Tankers and Par Pacific”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Teekay Tankers	$951.80 million	3.42	$351.19 million	$16.97	5.55
Par Pacific	$7.46 billion	0.52	$369.39 million	$17.14	4.51

Par Pacific has higher revenue and earnings than Teekay Tankers. Par Pacific is trading at a lower price-to-earnings ratio than Teekay Tankers, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Teekay Tankers and Par Pacific, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Teekay Tankers	1	3	3	1	2.50
Par Pacific	0	1	11	1	3.00

Teekay Tankers currently has a consensus target price of $77.00, suggesting a potential downside of 18.23%. Par Pacific has a consensus target price of $84.29, suggesting a potential upside of 9.07%. Given Par Pacific’s stronger consensus rating and higher possible upside, analysts plainly believe Par Pacific is more favorable than Teekay Tankers.

Volatility & Risk

Teekay Tankers has a beta of -0.19, suggesting that its stock price is 119% less volatile than the S&P 500. Comparatively, Par Pacific has a beta of 0.77, suggesting that its stock price is 23% less volatile than the S&P 500.

Profitability

This table compares Teekay Tankers and Par Pacific’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Teekay Tankers	51.35%	22.11%	20.23%
Par Pacific	9.94%	56.19%	21.61%

Summary

Par Pacific beats Teekay Tankers on 11 of the 14 factors compared between the two stocks.

About Teekay Tankers

Teekay Tankers Ltd. provides crude oil and other marine transportation services to oil industries in Bermuda and internationally. The company offers voyage and time charter services; offshore ship-to-ship transfer services of commodities primarily crude oil and refined oil products; and tanker commercial and technical management services. It also engages management of vessels, procurement, and equipment rental businesses. Teekay Tankers Ltd. was incorporated in 2007 and is headquartered in Hamilton, Bermuda.

About Par Pacific

Par Pacific Holdings, Inc. owns and operates energy and infrastructure businesses. The company operates through Refining, Retail, and Logistics segments. The Refining segment owns and operates refineries that produce gasoline, distillate, asphalt, and other products primarily for consumption in Kapolei, Hawaii, Newcastle, Wyoming, Tacoma, Washington, and Billings, Montana. The Retail segment operates fuel retail outlets, which sell merchandise, such as soft drinks, prepared foods, and other sundries in Hawaii under the Hele, 76, and nomnom brands; and gasoline, diesel, and retail merchandise in Washington and Idaho. The Logistics segment owns and operates terminals, pipelines, single point mooring, marine vessels, storage facilities, loading and truck racks, and rail facilities to distribute ethanol, petroleum, and refined products throughout Hawaii, the United States West Coast, Washington, the Dakotas, and Wyoming; and a jet fuel storage facility and pipeline that serves Ellsworth Air Force Base in South Dakota. It also holds interest in refined products pipeline. In addition, the company owns and operates a marine terminal, a unit train-capable rail loading terminal; a truck rack, and a proprietary pipeline that serves Joint Base Lewis McChord. The company was formerly known as Par Petroleum Corporation and changed its name to Par Pacific Holdings, Inc. in October 2015. Par Pacific Holdings, Inc. was incorporated in 1984 and is headquartered in Houston, Texas.