Kosmos Energy (NYSE:KOS) & Par Pacific (NYSE:PARR) Critical Survey

Kosmos Energy (NYSE:KOS) and Par Pacific (NYSE:PARR) are both small-cap oils/energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, earnings, profitability, dividends, risk and institutional ownership.

Valuation & Earnings

This table compares Kosmos Energy and Par Pacific”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kosmos Energy	$1.70 billion	0.87	$213.52 million	$0.44	7.15
Par Pacific	$8.23 billion	0.11	$728.64 million	$5.16	3.06

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

Institutional and Insider Ownership

95.3% of Kosmos Energy shares are owned by institutional investors. Comparatively, 92.2% of Par Pacific shares are owned by institutional investors. 2.0% of Kosmos Energy shares are owned by insiders. Comparatively, 4.4% of Par Pacific shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Kosmos Energy and Par Pacific’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kosmos Energy	12.21%	31.08%	6.53%
Par Pacific	3.74%	10.06%	3.37%

Risk & Volatility

Kosmos Energy has a beta of 2.41, indicating that its share price is 141% more volatile than the S&P 500. Comparatively, Par Pacific has a beta of 1.99, indicating that its share price is 99% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Kosmos Energy and Par Pacific, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kosmos Energy	0	2	3	0	2.60
Par Pacific	0	6	3	0	2.33

Kosmos Energy currently has a consensus price target of $5.52, suggesting a potential upside of 75.52%. Par Pacific has a consensus price target of $25.29, suggesting a potential upside of 60.22%. Given Kosmos Energy’s stronger consensus rating and higher probable upside, research analysts plainly believe Kosmos Energy is more favorable than Par Pacific.

Summary

Kosmos Energy beats Par Pacific on 9 of the 13 factors compared between the two stocks.

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.

About Par Pacific

Par Pacific Holdings, Inc. owns and operates energy and infrastructure businesses. The company operates through Refining, Retail, and Logistics segments. The Refining segment owns and operates refineries that produce gasoline, distillate, asphalt, and other products primarily for consumption in Kapolei, Hawaii, Newcastle, Wyoming, Tacoma, Washington, and Billings, Montana. The Retail segment operates fuel retail outlets, which sell merchandise, such as soft drinks, prepared foods, and other sundries in Hawaii under the Hele, 76, and nomnom brands; and gasoline, diesel, and retail merchandise in Washington and Idaho. The Logistics segment owns and operates terminals, pipelines, single point mooring, marine vessels, storage facilities, loading and truck racks, and rail facilities to distribute ethanol, petroleum, and refined products throughout Hawaii, the United States West Coast, Washington, the Dakotas, and Wyoming; and a jet fuel storage facility and pipeline that serves Ellsworth Air Force Base in South Dakota. It also holds interest in refined products pipeline. In addition, the company owns and operates a marine terminal, a unit train-capable rail loading terminal; a truck rack, and a proprietary pipeline that serves Joint Base Lewis McChord. The company was formerly known as Par Petroleum Corporation and changed its name to Par Pacific Holdings, Inc. in October 2015. Par Pacific Holdings, Inc. was incorporated in 1984 and is headquartered in Houston, Texas.