Analyzing Shell (NYSE:SHEL) and Tamboran Resources (NYSE:TBN)

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

Institutional and Insider Ownership

28.6% of Shell shares are owned by institutional investors. 1.0% of Shell shares are owned by insiders. Comparatively, 5.3% of Tamboran Resources shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Shell	4.93%	10.67%	5.02%
Tamboran Resources	N/A	-7.31%	-6.28%

Risk & Volatility

Shell has a beta of 0.39, meaning that its stock price is 61% less volatile than the S&P 500. Comparatively, Tamboran Resources has a beta of 0.32, meaning that its stock price is 68% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Shell and Tamboran Resources, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shell	0	8	9	1	2.61
Tamboran Resources	1	1	3	1	2.67

Shell presently has a consensus price target of $79.71, indicating a potential upside of 10.63%. Tamboran Resources has a consensus price target of $34.75, indicating a potential upside of 23.10%. Given Tamboran Resources’ stronger consensus rating and higher possible upside, analysts clearly believe Tamboran Resources is more favorable than Shell.

Earnings & Valuation

This table compares Shell and Tamboran Resources”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shell	$289.03 billion	0.73	$16.09 billion	$4.44	16.23
Tamboran Resources	N/A	N/A	-$36.90 million	($2.52)	-11.20

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

Summary

Shell beats Tamboran Resources on 10 of the 13 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 Tamboran Resources

Tamboran Resources Corporation, a natural gas company, focuses on developing unconventional gas resources in the northern territory of Australia. Its assets include a 25% non-operated working interest in EP 161; a 38.75% working interest in EPs 76, 98, and 117; and a 100% working interest in EPs 136 and 143, as well as EP (A) 197, located in the Betaloo Basin. Tamboran Resources Corporation was founded in 2009 and is headquartered in Sydney, Australia.