Critical Survey: Viper Energy (NASDAQ:VNOM) and Toro (NASDAQ:TORO)

Viper Energy (NASDAQ:VNOM – Get Free Report) and Toro (NASDAQ:TORO – 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 analyst recommendations, dividends, institutional ownership, profitability, risk, valuation and earnings.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Viper Energy and Toro, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Viper Energy 0 1 17 1 3.00
Toro 0 1 0 0 2.00

Viper Energy presently has a consensus price target of $56.56, indicating a potential upside of 21.74%. Given Viper Energy’s stronger consensus rating and higher probable upside, equities analysts plainly believe Viper Energy is more favorable than Toro.

Valuation and Earnings

This table compares Viper Energy and Toro”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Viper Energy $2.04 billion 8.20 -$68.00 million $0.13 357.38
Toro $24.40 million 4.01 $5.93 million ($0.11) -41.45

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

Profitability

This table compares Viper Energy and Toro’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Viper Energy 2.89% 3.43% 2.85%
Toro 16.42% 2.04% 1.17%

Insider and Institutional Ownership

87.7% of Viper Energy shares are owned by institutional investors. Comparatively, 1.7% of Toro shares are owned by institutional investors. 0.2% of Viper Energy shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Risk and Volatility

Viper Energy has a beta of 0.5, meaning that its stock price is 50% less volatile than the S&P 500. Comparatively, Toro has a beta of 2.59, meaning that its stock price is 159% more volatile than the S&P 500.

Summary

Viper Energy beats Toro on 12 of the 15 factors compared between the two stocks.

About Viper Energy

(Get Free Report)

Viper Energy, Inc. engages in the acquisition of oil and natural gas properties. It owns, acquires, and exploits oil and natural gas properties in North America. The company was founded on February 27, 2014 and is headquartered in Midland, TX.

About Toro

(Get Free Report)

Toro Corp., a shipping company, acquires, owns, charters, and operates oceangoing tanker vessels and provides seaborne transportation services for crude oil LPG, and refined petroleum products worldwide. The company operates in three segments: Aframax/LR2 Tanker, Handysize Tanker, and LPG Carrier. As of December 31, 2023, it operated a fleet of one Handysize tanker vessel; one Aframax/LR2 vessel; and four LPG carrier vessels with an aggregate cargo carrying capacity of 0.1 million deadweight ton. Toro Corp. was incorporated in 2022 and is based in Limassol, Cyprus.

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