Talos Energy (NYSE:TALO – Get Free Report) and Mach Natural Resources (NYSE:MNR – Get Free Report) are both small-cap energy companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, profitability, dividends, risk, valuation, earnings and institutional ownership.
Institutional & Insider Ownership
89.3% of Talos Energy shares are held by institutional investors. Comparatively, 78.4% of Mach Natural Resources shares are held by institutional investors. 0.4% of Talos Energy shares are held by company insiders. Comparatively, 87.8% of Mach Natural Resources shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Valuation and Earnings
This table compares Talos Energy and Mach Natural Resources”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 | $1.87 billion | 0.98 | -$76.39 million | ($2.01) | -5.39 |
| Mach Natural Resources | $969.63 million | 1.88 | $185.18 million | $0.96 | 11.27 |
Mach Natural Resources has lower revenue, but higher earnings than Talos Energy. Talos Energy is trading at a lower price-to-earnings ratio than Mach Natural Resources, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Talos Energy has a beta of 0.57, meaning that its stock price is 43% less volatile than the S&P 500. Comparatively, Mach Natural Resources has a beta of -0.07, meaning that its stock price is 107% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Talos Energy and Mach Natural Resources, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Talos Energy | 1 | 2 | 4 | 0 | 2.43 |
| Mach Natural Resources | 1 | 1 | 4 | 2 | 2.88 |
Talos Energy presently has a consensus target price of $14.25, suggesting a potential upside of 31.52%. Mach Natural Resources has a consensus target price of $21.00, suggesting a potential upside of 94.07%. Given Mach Natural Resources’ stronger consensus rating and higher probable upside, analysts clearly believe Mach Natural Resources is more favorable than Talos Energy.
Profitability
This table compares Talos Energy and Mach Natural Resources’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Talos Energy | -19.02% | -2.76% | -1.20% |
| Mach Natural Resources | 10.40% | 19.47% | 10.78% |
Summary
Mach Natural Resources beats Talos Energy on 11 of the 14 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 Mach Natural Resources
Mach Natural Resources LP, an independent upstream oil and gas company, focuses on the acquisition, development, and production of oil, natural gas, and natural gas liquids reserves in the Anadarko Basin region of Western Oklahoma, Southern Kansas, and the panhandle of Texas. It also owns a portfolio of midstream assets, as well as owns plants and water infrastructure. The company was incorporated in 2023 and is headquartered in Oklahoma City, Oklahoma.
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