Talos Energy (NYSE:TALO – Get Free Report) and Kosmos Energy (NYSE:KOS – Get Free Report) are both small-cap energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, institutional ownership, profitability, risk and dividends.
Risk & Volatility
Talos Energy has a beta of 1.79, indicating that its stock price is 79% more volatile than the S&P 500. Comparatively, Kosmos Energy has a beta of 2.31, indicating that its stock price is 131% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and price targets for Talos Energy and Kosmos Energy, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Talos Energy | 0 | 2 | 7 | 0 | 2.78 |
| Kosmos Energy | 0 | 3 | 2 | 0 | 2.40 |
Earnings and Valuation
This table compares Talos Energy and Kosmos Energy”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Talos Energy | $1.97 billion | 0.84 | $187.33 million | ($0.51) | -17.97 |
| Kosmos Energy | $1.68 billion | 0.65 | $213.52 million | $0.39 | 5.81 |
Kosmos Energy has lower revenue, but higher earnings than Talos Energy. Talos Energy is trading at a lower price-to-earnings ratio than Kosmos Energy, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Talos Energy and Kosmos 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% |
| Kosmos Energy | 12.21% | 31.08% | 6.53% |
Institutional & Insider Ownership
89.3% of Talos Energy shares are owned by institutional investors. Comparatively, 95.3% of Kosmos Energy shares are owned by institutional investors. 0.8% of Talos Energy shares are owned by company insiders. Comparatively, 2.0% of Kosmos Energy shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Summary
Kosmos Energy beats Talos Energy on 9 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 Kosmos Energy
Kosmos Energy Ltd., together with its subsidiaries, engages in the exploration, development, and production of oil and gas along the Atlantic Margins in the United States. The company’s primary assets include production projects located in offshore Ghana, Equatorial Guinea, and the U.S. Gulf of Mexico, as well as gas projects located in offshore Mauritania and Senegal. It undertakes a proven basin exploration program in Equatorial Guinea and the U.S. Gulf of Mexico. Kosmos Energy Ltd. was founded in 2003 and is headquartered in Dallas, Texas.
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