Talos Energy (NYSE:TALO – Get Free Report) and Zion Oil & Gas (OTCMKTS:ZNOG – Get Free Report) are both energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, earnings, dividends, valuation, profitability and institutional ownership.
Risk and Volatility
Talos Energy has a beta of 0.33, meaning that its share price is 67% less volatile than the S&P 500. Comparatively, Zion Oil & Gas has a beta of 0.63, meaning that its share price is 37% less volatile than the S&P 500.
Valuation and Earnings
This table compares Talos Energy and Zion Oil & Gas”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Talos Energy | $1.78 billion | 1.38 | -$494.29 million | ($4.31) | -3.40 |
| Zion Oil & Gas | N/A | N/A | -$7.63 million | ($1.77) | -0.27 |
Zion Oil & Gas has lower revenue, but higher earnings than Talos Energy. Talos Energy is trading at a lower price-to-earnings ratio than Zion Oil & Gas, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent recommendations and price targets for Talos Energy and Zion Oil & Gas, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Talos Energy | 1 | 4 | 3 | 0 | 2.25 |
| Zion Oil & Gas | 0 | 0 | 0 | 0 | 0.00 |
Talos Energy currently has a consensus price target of $17.67, suggesting a potential upside of 20.39%. Given Talos Energy’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Talos Energy is more favorable than Zion Oil & Gas.
Institutional & Insider Ownership
89.4% of Talos Energy shares are held by institutional investors. Comparatively, 7.9% of Zion Oil & Gas shares are held by institutional investors. 0.4% of Talos Energy shares are held by insiders. Comparatively, 2.2% of Zion Oil & Gas shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares Talos Energy and Zion Oil & Gas’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Talos Energy | -42.58% | -8.24% | -3.28% |
| Zion Oil & Gas | N/A | -18.78% | -17.25% |
Summary
Talos Energy beats Zion Oil & Gas on 7 of the 13 factors compared between the two stocks.
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.
About Zion Oil & Gas
Zion Oil & Gas, Inc., together with its subsidiaries, operates as an oil and gas exploration company in Israel. It holds a petroleum exploration license onshore Israel, the New Megiddo License 434 comprising an area of approximately 75,000 acres. The company was incorporated in 2000 and is headquartered in Dallas, Texas.
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