World Kinect (NYSE:WKC) and Par Pacific (NYSE:PARR) Critical Comparison

World Kinect (NYSE:WKC) and Par Pacific (NYSE:PARR) are both small-cap energy companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, profitability, dividends, institutional ownership, risk and earnings.

Valuation & Earnings

This table compares World Kinect 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
World Kinect	$42.17 billion	0.04	$67.40 million	($7.63)	-3.49
Par Pacific	$7.61 billion	0.22	-$33.32 million	($0.28)	-116.19

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

Analyst Ratings

This is a summary of current ratings and recommmendations for World Kinect and Par Pacific, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
World Kinect	2	2	1	0	1.80
Par Pacific	0	5	5	1	2.64

World Kinect presently has a consensus target price of $29.40, suggesting a potential upside of 10.51%. Par Pacific has a consensus target price of $28.9643, suggesting a potential downside of 10.97%. Given World Kinect’s higher probable upside, equities research analysts plainly believe World Kinect is more favorable than Par Pacific.

Institutional & Insider Ownership

97.1% of World Kinect shares are owned by institutional investors. Comparatively, 92.2% of Par Pacific shares are owned by institutional investors. 2.9% of World Kinect shares are owned by insiders. Comparatively, 4.4% of Par Pacific shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Risk & Volatility

World Kinect has a beta of 1.39, meaning that its stock price is 39% more volatile than the S&P 500. Comparatively, Par Pacific has a beta of 1.83, meaning that its stock price is 83% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
World Kinect	-1.11%	7.07%	2.02%
Par Pacific	-0.25%	-1.79%	-0.55%

Summary

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

About World Kinect

World Kinect Corporation operates as an energy management company in the United States, the Americas, Europe, the Middle East, Africa, and the Asia Pacific. This segment also offers fuel management, price risk management, ground handling, dispatch services, and trip planning services, such as flight planning and scheduling, weather reports and overflight permits; payment and processing services; and operates a web-based marketplace platform. The Land segment offers fuel, lubricants, heating oil, and related products and services to retail petroleum operators, as well as industrial, commercial, residential and government customers. This segment also provides sustainability solutions, such as renewable fuel products, carbon management, and renewable energy solutions; distributes fuel under long-term contracts to branded and unbranded distributors, convenience stores, and retail fuel outlets operated by third parties; distributes heating oil and unbranded fuel; and transportation logistics. The Marine segment markets fuel, lubricants, and related products and services to international container, dry bulk and tanker fleets, commercial cruise lines, yachts and time charter operators, offshore rig owners and operators, the U.S. and foreign governments, and other fuel suppliers. This segment also offers marine fuel-related services include management services to procurement of fuel, price risk management, cost control, quality control, and claims management services; and engages in the fueling of vessels, and transportation and delivery of fuel and fuel-related products. The company was formerly known as World Fuel Services Corporation and changed its name to World Kinect Corporation in June 2023. World Kinect Corporation was incorporated in 1984 and is headquartered in Miami, Florida.

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.