Tourmaline Oil (OTCMKTS:TRMLF – Get Free Report) and Baytex Energy (NYSE:BTE – Get Free Report) are both energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, profitability, institutional ownership, risk and valuation.
Profitability
This table compares Tourmaline Oil and Baytex Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Tourmaline Oil | 10.27% | 10.46% | 7.25% |
| Baytex Energy | -24.25% | -10.85% | -6.38% |
Valuation & Earnings
This table compares Tourmaline Oil and Baytex Energy”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Tourmaline Oil | $4.72 billion | 3.83 | $187.99 million | $1.36 | 34.19 |
| Baytex Energy | $2.56 billion | 1.40 | -$432.12 million | ($0.70) | -7.08 |
Tourmaline Oil has higher revenue and earnings than Baytex Energy. Baytex Energy is trading at a lower price-to-earnings ratio than Tourmaline Oil, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
1.8% of Tourmaline Oil shares are owned by institutional investors. Comparatively, 46.2% of Baytex Energy shares are owned by institutional investors. 0.8% of Baytex Energy shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Tourmaline Oil and Baytex Energy, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Tourmaline Oil | 0 | 6 | 3 | 2 | 2.64 |
| Baytex Energy | 1 | 6 | 3 | 1 | 2.36 |
Tourmaline Oil presently has a consensus target price of $65.00, indicating a potential upside of 39.78%. Given Tourmaline Oil’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Tourmaline Oil is more favorable than Baytex Energy.
Risk & Volatility
Tourmaline Oil has a beta of -0.28, suggesting that its share price is 128% less volatile than the S&P 500. Comparatively, Baytex Energy has a beta of 0.37, suggesting that its share price is 63% less volatile than the S&P 500.
Dividends
Tourmaline Oil pays an annual dividend of $1.47 per share and has a dividend yield of 3.2%. Baytex Energy pays an annual dividend of $0.07 per share and has a dividend yield of 1.4%. Tourmaline Oil pays out 108.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Baytex Energy pays out -10.0% of its earnings in the form of a dividend.
Summary
Tourmaline Oil beats Baytex Energy on 12 of the 16 factors compared between the two stocks.
About Tourmaline Oil
Tourmaline Oil Corp. explores for and develops oil and natural gas properties in the Western Canadian Sedimentary Basin. The company holds interests in properties located in the Alberta Deep Basin, Northeast British Columbia Montney, and the Peace River High Triassic oil complex. Tourmaline Oil Corp. was incorporated in 2008 and is headquartered in Calgary, Canada.
About Baytex Energy
Baytex Energy Corp. is an oil & gas exploration and production company. The firm engages in the acquisition, development and production of crude oil and natural gas in the Western Canadian Sedimentary Basin and in the Eagle Ford in the United States. The company was founded on June 3, 1993 and is headquartered in Calgary, Canada.
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