Par Pacific (NYSE:PARR) versus Viper Energy (NASDAQ:VNOM) Critical Analysis

Viper Energy (NASDAQ:VNOM) and Par Pacific (NYSE:PARR) are both energy companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, dividends, profitability and institutional ownership.

Analyst Recommendations

This is a summary of current recommendations and price targets for Viper Energy and Par Pacific, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Viper Energy	0	1	17	1	3.00
Par Pacific	0	2	10	1	2.92

Viper Energy presently has a consensus price target of $56.50, indicating a potential upside of 28.03%. Par Pacific has a consensus price target of $85.14, indicating a potential downside of 3.49%. Given Viper Energy’s stronger consensus rating and higher probable upside, analysts plainly believe Viper Energy is more favorable than Par Pacific.

Earnings & Valuation

This table compares Viper Energy and Par Pacific”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Viper Energy	$1.40 billion	11.36	-$68.00 million	$0.13	339.46
Par Pacific	$7.46 billion	0.59	$369.39 million	$17.14	5.15

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Viper Energy	2.89%	3.43%	2.85%
Par Pacific	9.94%	56.19%	21.61%

Institutional & Insider Ownership

87.7% of Viper Energy shares are held by institutional investors. Comparatively, 92.2% of Par Pacific shares are held by institutional investors. 0.2% of Viper Energy shares are held by company insiders. Comparatively, 3.6% of Par Pacific shares are held 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.

Risk and Volatility

Viper Energy has a beta of 0.5, meaning that its stock price is 50% less volatile than the S&P 500. Comparatively, Par Pacific has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500.

Summary

Par Pacific beats Viper Energy on 9 of the 14 factors compared between the two stocks.

About Viper Energy

Viper Energy, Inc. engages in the acquisition of oil and natural gas properties. It owns, acquires, and exploits oil and natural gas properties in North America. The company was founded on February 27, 2014 and is headquartered in Midland, TX.

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.