Comparing Talos Energy (NYSE:TALO) & Royale Energy (OTCMKTS:ROYL)

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

Profitability

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

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

Earnings & Valuation

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

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

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.

Insider & Institutional Ownership

89.3% of Talos Energy shares are held by institutional investors. 61.8% of Royale Energy shares are held by insiders. Comparatively, 0.8% of Talos Energy shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Royale Energy and Talos Energy, as reported by MarketBeat.

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

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

Volatility and Risk

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

Summary

Talos Energy beats Royale Energy on 10 of the 14 factors compared between the two stocks.

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.

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.