Analyzing Talos Energy (NYSE:TALO) and Royale Energy (OTCMKTS:ROYL)

Talos Energy (NYSE:TALO) and Royale Energy (OTCMKTS:ROYL) are both small-cap oils/energy companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, earnings, valuation, dividends, institutional ownership and risk.

Profitability

This table compares Talos Energy and Royale Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Talos Energy	3.95%	-1.98%	-0.86%
Royale Energy	-145.31%	N/A	N/A

Earnings and Valuation

This table compares Talos Energy and Royale Energy”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Talos Energy	$1.87 billion	0.94	$187.33 million	$0.54	18.09
Royale Energy	$2.16 million	1.41	-$1.83 million	($0.05)	-0.86

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

Volatility & Risk

Talos Energy has a beta of 1.92, meaning that its share price is 92% more volatile than the S&P 500. Comparatively, Royale Energy has a beta of 0.04, meaning that its share price is 96% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Talos Energy and Royale Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Talos Energy	0	2	7	0	2.78
Royale Energy	0	0	0	0	0.00

Talos Energy presently has a consensus price target of $16.28, suggesting a potential upside of 66.61%. Given Talos Energy’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Talos Energy is more favorable than Royale Energy.

Institutional and Insider Ownership

89.3% of Talos Energy shares are held by institutional investors. 0.8% of Talos Energy shares are held by company insiders. Comparatively, 61.8% of Royale Energy shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Talos Energy beats Royale Energy on 10 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 Royale Energy

Royale Energy, Inc. acquires, explores for, develops, produces, and sells oil and natural gas properties in the United States. Its principal operations are located in the Sacramento Basin and San Joaquin Basin in California, as well as in Utah, Texas, Oklahoma, Louisiana, and Colorado. Royale Energy, Inc. was incorporated in 1986 and is based in El Cajon, California.