Reviewing Galp Energia, SGPS (OTCMKTS:GLPEY) and Par Pacific (NYSE:PARR)

Galp Energia, SGPS (OTCMKTS:GLPEY) and Par Pacific (NYSE:PARR) are both energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, profitability, risk, earnings, institutional ownership, analyst recommendations and dividends.

Volatility and Risk

Galp Energia, SGPS has a beta of 0.43, indicating that its share price is 57% less volatile than the S&P 500. Comparatively, Par Pacific has a beta of 2.01, indicating that its share price is 101% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Galp Energia, SGPS	6.17%	24.38%	8.14%
Par Pacific	3.74%	10.06%	3.37%

Earnings & Valuation

This table compares Galp Energia, SGPS and Par Pacific”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Galp Energia, SGPS	$22.04 billion	0.53	$1.34 billion	$0.94	8.90
Par Pacific	$7.97 billion	0.10	$728.64 million	($0.62)	-22.83

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

Analyst Recommendations

This is a summary of recent ratings and target prices for Galp Energia, SGPS and Par Pacific, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Galp Energia, SGPS	0	0	0	2	4.00
Par Pacific	0	5	4	0	2.44

Par Pacific has a consensus price target of $22.57, indicating a potential upside of 59.45%. Given Par Pacific’s higher possible upside, analysts clearly believe Par Pacific is more favorable than Galp Energia, SGPS.

Insider & Institutional Ownership

92.2% of Par Pacific shares are held by institutional investors. 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 company is poised for long-term growth.

Summary

Galp Energia, SGPS beats Par Pacific on 10 of the 15 factors compared between the two stocks.

About Galp Energia, SGPS

Galp Energia, SGPS, S.A. operates as an integrated energy operator in Portugal and internationally. The company operates through four segments: Upstream, Industrial & Midstream, Commercial, and Renewables and New Business. The Upstream segment engages in the exploration, development, and production of hydrocarbons primarily in Brazil, Mozambique, Namibia, and Angola. The Industrial & Midstream segment owns refineries in Portugal, as well as is involved in activities related to energy management of oil products, gas, and electricity. This segment provides storage and transportation infrastructure for oil and gas products, as well as engages in the sale of electricity to the grid in Portugal and Spain. The Commercial segment is involved in the areas of retail to final business-to-business and business to consumer customers of oil, gas, and electricity. The Renewables and New Business segment is involved in the development of solar and wind power generation projects in Portugal and Spain. In addition, it produces lithium-ion batteries, hydrogen, and biofuels; and operates service stations. Further, the company engages in the reinsurance business. The company was formerly known as Galp Petróleos e Gás de Portugal, SGPS, S.A. and changed its name to Galp Energia, SGPS, S.A. in September 2000. Galp Energia, SGPS, S.A. was incorporated in 1999 and is headquartered in Lisbon, Portugal.

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.