Par Pacific (NYSE:PARR – Get Free Report) and Teekay Tankers (NYSE:TNK – Get Free Report) are both mid-cap energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, valuation, earnings, analyst recommendations, profitability, risk and dividends.
Risk and Volatility
Par Pacific has a beta of 0.77, meaning that its stock price is 23% less volatile than the S&P 500. Comparatively, Teekay Tankers has a beta of -0.19, meaning that its stock price is 119% less volatile than the S&P 500.
Institutional & Insider Ownership
92.2% of Par Pacific shares are owned by institutional investors. Comparatively, 52.7% of Teekay Tankers shares are owned by institutional investors. 3.6% of Par Pacific shares are owned by company insiders. Comparatively, 1.9% of Teekay Tankers shares are owned 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.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Par Pacific | 0 | 1 | 11 | 1 | 3.00 |
| Teekay Tankers | 1 | 3 | 3 | 1 | 2.50 |
Par Pacific presently has a consensus price target of $84.29, suggesting a potential upside of 1.05%. Teekay Tankers has a consensus price target of $77.00, suggesting a potential downside of 24.42%. Given Par Pacific’s stronger consensus rating and higher possible upside, analysts clearly believe Par Pacific is more favorable than Teekay Tankers.
Profitability
This table compares Par Pacific and Teekay Tankers’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Par Pacific | 9.94% | 56.19% | 21.61% |
| Teekay Tankers | 51.35% | 22.11% | 20.23% |
Earnings and Valuation
This table compares Par Pacific and Teekay Tankers”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Par Pacific | $8.62 billion | 0.48 | $369.39 million | $17.14 | 4.87 |
| Teekay Tankers | $951.80 million | 3.70 | $351.19 million | $16.97 | 6.00 |
Par Pacific has higher revenue and earnings than Teekay Tankers. Par Pacific is trading at a lower price-to-earnings ratio than Teekay Tankers, indicating that it is currently the more affordable of the two stocks.
Summary
Par Pacific beats Teekay Tankers on 11 of the 14 factors compared between the two stocks.
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.
About Teekay Tankers
Teekay Tankers Ltd. provides crude oil and other marine transportation services to oil industries in Bermuda and internationally. The company offers voyage and time charter services; offshore ship-to-ship transfer services of commodities primarily crude oil and refined oil products; and tanker commercial and technical management services. It also engages management of vessels, procurement, and equipment rental businesses. Teekay Tankers Ltd. was incorporated in 2007 and is headquartered in Hamilton, Bermuda.
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