Comparing Vermilion Energy (NYSE:VET) and Par Pacific (NYSE:PARR)

Par Pacific (NYSE:PARR) and Vermilion Energy (NYSE:VET) 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, risk, profitability, dividends, valuation, analyst recommendations and institutional ownership.

Institutional and Insider Ownership

92.2% of Par Pacific shares are owned by institutional investors. Comparatively, 31.9% of Vermilion Energy shares are owned by institutional investors. 4.4% of Par Pacific shares are owned by company insiders. Comparatively, 2.6% of Vermilion Energy shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Par Pacific	5.71%	35.02%	10.73%
Vermilion Energy	-30.71%	11.65%	5.93%

Analyst Ratings

This is a summary of recent recommendations for Par Pacific and Vermilion Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Par Pacific	0	3	3	0	2.50
Vermilion Energy	0	1	3	0	2.75

Par Pacific presently has a consensus price target of $35.67, suggesting a potential upside of 43.70%. Vermilion Energy has a consensus price target of $25.00, suggesting a potential upside of 140.04%. Given Vermilion Energy’s stronger consensus rating and higher probable upside, analysts clearly believe Vermilion Energy is more favorable than Par Pacific.

Risk and Volatility

Par Pacific has a beta of 2.01, indicating that its stock price is 101% more volatile than the S&P 500. Comparatively, Vermilion Energy has a beta of 2.03, indicating that its stock price is 103% more volatile than the S&P 500.

Valuation & Earnings

This table compares Par Pacific and Vermilion Energy’s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Par Pacific	$8.23 billion	0.17	$728.64 million	$7.99	3.11
Vermilion Energy	$1.49 billion	1.11	-$176.01 million	($2.78)	-3.75

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

Summary

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

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.

About Vermilion Energy

Vermilion Energy Inc., together with its subsidiaries, engages in the acquisition, exploration, development, and production of petroleum and natural gas. The company has properties in West Central Alberta, southeast Saskatchewan, Manitoba, and West Pembina in Canada; Wyoming in the United States; southwest Bordeaux and Paris Basin in France; the Netherlands; Germany; Ireland; Croatia; Slovakia; and Australia. The company was founded in 1994 and is headquartered in Calgary, Canada.