Critical Comparison: Transglobe Energy Corp (TGA) versus Parsley Energy (PE)
Transglobe Energy Corp (NASDAQ: TGA) and Parsley Energy (NYSE:PE) are both oils/energy companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, profitability, institutional ownership, dividends and risk.
This table compares Transglobe Energy Corp and Parsley Energy’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Transglobe Energy Corp||-119.18%||-10.87%||-7.60%|
Volatility and Risk
Transglobe Energy Corp has a beta of 0.84, suggesting that its share price is 16% less volatile than the S&P 500. Comparatively, Parsley Energy has a beta of -0.05, suggesting that its share price is 105% less volatile than the S&P 500.
This is a summary of current recommendations and price targets for Transglobe Energy Corp and Parsley Energy, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Transglobe Energy Corp||0||2||2||0||2.50|
Transglobe Energy Corp presently has a consensus price target of $3.50, indicating a potential upside of 127.27%. Parsley Energy has a consensus price target of $40.71, indicating a potential upside of 44.10%. Given Transglobe Energy Corp’s higher probable upside, analysts clearly believe Transglobe Energy Corp is more favorable than Parsley Energy.
Institutional & Insider Ownership
25.9% of Transglobe Energy Corp shares are owned by institutional investors. Comparatively, 77.7% of Parsley Energy shares are owned by institutional investors. 4.0% of Transglobe Energy Corp shares are owned by insiders. Comparatively, 15.5% of Parsley Energy shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares Transglobe Energy Corp and Parsley Energy’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Transglobe Energy Corp||$122.36 million||0.91||-$87.66 million||($1.80)||-0.86|
|Parsley Energy||$457.77 million||19.41||-$74.18 million||$0.11||256.86|
Parsley Energy has higher revenue and earnings than Transglobe Energy Corp. Transglobe Energy Corp is trading at a lower price-to-earnings ratio than Parsley Energy, indicating that it is currently the more affordable of the two stocks.
Parsley Energy beats Transglobe Energy Corp on 11 of the 13 factors compared between the two stocks.
Transglobe Energy Corp Company Profile
TransGlobe Energy Corporation is an oil exploration and production company. The Company’s activities are concentrated in the Arab Republic of Egypt (Egypt). The Company conducts its operations through the Arab Republic of Egypt segment. The Company is primarily engaged in oil exploration, development, production and the acquisition of properties. It holds interests in various production sharing concessions (PSC) in Eastern Desert Egypt and Western Desert Egypt. Its blocks in Eastern Desert Egypt include West Gharib, which covers approximately 34,860 acres; West Bakr, covering over 11,600 acres; North West (NW) Gharib, covering approximately 162,000 acres; South East (SE) Gharib, which covers over 125,650 acres, and South West (SW) Gharib, covering approximately 48,310 acres. Its blocks in the Western Desert Egypt include South Alamein, covering approximately 335,830 acres; South Ghazalat, covering over 465,300 acres, and North West (NW) Sitra, covering approximately 480,850 acres.
Parsley Energy Company Profile
Parsley Energy, Inc. is a holding company. The Company is an independent oil and natural gas company. The Company focuses on the acquisition, development and exploitation of unconventional oil and natural gas reserves in the Permian Basin. The Permian Basin is located in West Texas and Southeastern New Mexico and includes three primary sub-areas: the Midland Basin, the Central Basin Platform and the Delaware Basin. The Company’s properties are primarily located in the Midland and Delaware Basins, where it focuses on horizontal development drilling and target various stacked pay intervals in the Spraberry, Wolfcamp, Upper Pennsylvanian (Cline) and Atoka shales. As of December 31, 2016, it had an average working interest of 87% in 166 gross (146.7 net) horizontal wells, of which 151 gross (132.4 net) are in the Midland Basin. As of December 31, 2016, the Company operated seven horizontal rigs and three vertical drilling rigs.
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