Reviewing Talos Energy (NYSE:TALO) & Marathon Oil (NYSE:MRO)

Talos Energy (NYSE:TALOGet Rating) and Marathon Oil (NYSE:MROGet Rating) are both oils/energy companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, risk, profitability, institutional ownership, valuation, earnings and analyst recommendations.

Profitability

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

Net Margins Return on Equity Return on Assets
Talos Energy 12.02% 24.73% 6.67%
Marathon Oil 42.46% 23.30% 14.68%

Earnings and Valuation

This table compares Talos Energy and Marathon Oil’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Talos Energy $1.24 billion 1.30 -$182.95 million $2.30 8.50
Marathon Oil $5.47 billion 3.32 $946.00 million $4.22 6.07

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

Institutional and Insider Ownership

92.3% of Talos Energy shares are held by institutional investors. Comparatively, 75.2% of Marathon Oil shares are held by institutional investors. 0.8% of Talos Energy shares are held by insiders. Comparatively, 0.5% of Marathon Oil shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent ratings for Talos Energy and Marathon Oil, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Talos Energy 0 1 6 0 2.86
Marathon Oil 2 4 9 1 2.56

Talos Energy currently has a consensus target price of $20.94, indicating a potential upside of 7.10%. Marathon Oil has a consensus target price of $30.19, indicating a potential upside of 17.87%. Given Marathon Oil’s higher possible upside, analysts clearly believe Marathon Oil is more favorable than Talos Energy.

Risk & Volatility

Talos Energy has a beta of 2.27, meaning that its share price is 127% more volatile than the S&P 500. Comparatively, Marathon Oil has a beta of 2.48, meaning that its share price is 148% more volatile than the S&P 500.

Summary

Marathon Oil beats Talos Energy on 10 of the 15 factors compared between the two stocks.

About Talos Energy

(Get Rating)

Talos Energy Inc., an independent exploration and production company, focuses on the exploration and production of oil and natural gas properties in the United States Gulf of Mexico and offshore Mexico. As of December 31, 2021, the company had proved reserves of 161.59 million barrels of oil equivalent, consisting of 107,764 thousand barrels of crude oil, 236,353 million cubic feet of natural gas, and 14,435 thousand barrels of crude oil. The company was founded in 2011 and is based in Houston, Texas.

About Marathon Oil

(Get Rating)

Marathon Oil Corporation operates as an independent exploration and production company in the United States and internationally. The company engages in the exploration, production, and marketing of crude oil and condensate, natural gas liquids, and natural gas; and the production and marketing of products manufactured from natural gas, such as liquefied natural gas and methanol. It also owns and operates 32 central gathering and treating facilities; and the Sugarloaf gathering system, a 42-mile natural gas pipeline through Karnes and Atascosa Counties. The company was formerly known as USX Corporation and changed its name to Marathon Oil Corporation in December 2001. Marathon Oil Corporation was founded in 1887 and is headquartered in Houston, Texas.

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