Head-To-Head Contrast: APA (NASDAQ:APA) & Par Pacific (NYSE:PARR)

APA (NASDAQ:APA) and Par Pacific (NYSE:PARR) are both oils/energy companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, institutional ownership, analyst recommendations, earnings, profitability and dividends.

Valuation & Earnings

This table compares APA and Par Pacific’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
APA	$8.19 billion	1.10	$2.86 billion	$8.94	3.35
Par Pacific	$8.23 billion	0.22	$728.64 million	$11.95	2.54

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

Analyst Recommendations

This is a summary of recent ratings and price targets for APA and Par Pacific, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
APA	3	10	5	1	2.21
Par Pacific	0	2	1	0	2.33

APA currently has a consensus target price of $42.05, suggesting a potential upside of 40.54%. Par Pacific has a consensus target price of $39.67, suggesting a potential upside of 30.78%. Given APA’s higher probable upside, equities analysts clearly believe APA is more favorable than Par Pacific.

Institutional & Insider Ownership

83.0% of APA shares are held by institutional investors. Comparatively, 92.2% of Par Pacific shares are held by institutional investors. 1.3% of APA shares are held by insiders. Comparatively, 4.4% of Par Pacific shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

APA has a beta of 3.29, suggesting that its stock price is 229% more volatile than the S&P 500. Comparatively, Par Pacific has a beta of 1.98, suggesting that its stock price is 98% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
APA	34.04%	45.32%	8.87%
Par Pacific	8.85%	47.63%	13.66%

Summary

APA beats Par Pacific on 8 of the 15 factors compared between the two stocks.

About APA

APA Corporation, an independent energy company, explores for, develops, and produces natural gas, crude oil, and natural gas liquids. It has oil and gas operations in the United States, Egypt, and North Sea. The company also has exploration and appraisal activities in Suriname, as well as holds interests in projects located in Uruguay and internationally. APA Corporation was incorporated in 1954 and is headquartered in Houston, Texas.

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.