Head to Head Analysis: Royale Energy (OTCMKTS:ROYL) & Talos Energy (NYSE:TALO)

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

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	0.95	$187.33 million	$0.54	18.37
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.

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

Analyst Ratings

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

	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 currently has a consensus price target of $16.28, suggesting a potential upside of 64.09%. Given Talos Energy’s stronger consensus rating and higher probable upside, equities analysts plainly believe Talos Energy is more favorable than Royale Energy.

Volatility & Risk

Talos Energy has a beta of 1.91, indicating that its share price is 91% more volatile than the S&P 500. Comparatively, Royale Energy has a beta of 0.1, indicating that its share price is 90% less volatile than the S&P 500.

Insider & Institutional 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 endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

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.