Head-To-Head Analysis: Talos Energy (NYSE:TALO) versus Enerplus (NYSE:ERF)

Enerplus (NYSE:ERF) and Talos Energy (NYSE:TALO) are both mid-cap oils/energy companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, earnings, analyst recommendations, valuation and dividends.

Valuation and Earnings

This table compares Enerplus and Talos Energy’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Enerplus	$1.69 billion	2.42	$456.08 million	$1.80	11.16
Talos Energy	$1.46 billion	1.42	$187.33 million	$0.07	160.57

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Enerplus	24.09%	33.88%	19.89%
Talos Energy	-0.96%	-0.16%	-0.07%

Analyst Recommendations

This is a summary of current ratings for Enerplus and Talos Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Enerplus	1	1	4	0	2.50
Talos Energy	0	0	8	0	3.00

Enerplus presently has a consensus price target of $21.87, indicating a potential upside of 8.86%. Talos Energy has a consensus price target of $20.94, indicating a potential upside of 86.28%. Given Talos Energy’s stronger consensus rating and higher possible upside, analysts clearly believe Talos Energy is more favorable than Enerplus.

Institutional and Insider Ownership

58.4% of Enerplus shares are held by institutional investors. Comparatively, 89.4% of Talos Energy shares are held by institutional investors. 0.4% of Enerplus shares are held by company insiders. Comparatively, 0.8% of Talos Energy shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Risk & Volatility

Enerplus has a beta of 1.97, meaning that its stock price is 97% more volatile than the S&P 500. Comparatively, Talos Energy has a beta of 1.92, meaning that its stock price is 92% more volatile than the S&P 500.

Summary

Enerplus beats Talos Energy on 8 of the 14 factors compared between the two stocks.

About Enerplus

Enerplus Corporation, together with its subsidiaries, explores and develops crude oil and natural gas in the United States. Its oil and natural gas properties are located primarily in North Dakota, Colorado, and Pennsylvania. The company was founded in 1986 and is headquartered in Calgary, Canada.

About Talos Energy

Talos Energy Inc., through its subsidiaries, engages in the exploration and production of oil, natural gas, and natural gas liquids in the United States and Mexico. It also engages in the development of carbon capture and sequestration. Talos Energy Inc. was founded in 2011 and is headquartered in Houston, Texas.