Baytex Energy (NYSE:BTE) and Paramount Resources (OTCMKTS:PRMRF) Head-To-Head Contrast

Paramount Resources (OTCMKTS:PRMRF) and Baytex Energy (NYSE:BTE) are both mid-cap energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, earnings, risk and valuation.

Insider & Institutional Ownership

4.1% of Paramount Resources shares are held by institutional investors. Comparatively, 46.2% of Baytex Energy shares are held by institutional investors. 36.3% of Paramount Resources shares are held by company insiders. Comparatively, 0.8% of Baytex Energy shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Dividends

Paramount Resources pays an annual dividend of $0.43 per share and has a dividend yield of 1.9%. Baytex Energy pays an annual dividend of $0.07 per share and has a dividend yield of 1.3%. Paramount Resources pays out 7.1% of its earnings in the form of a dividend. Baytex Energy pays out -12.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Paramount Resources and Baytex Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Paramount Resources	0	3	4	1	2.75
Baytex Energy	1	4	3	1	2.44

Valuation and Earnings

This table compares Paramount Resources and Baytex Energy”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Paramount Resources	$692.73 million	4.81	$922.32 million	$6.09	3.78
Baytex Energy	$2.56 billion	1.49	-$432.12 million	($0.57)	-9.18

Paramount Resources has higher earnings, but lower revenue than Baytex Energy. Baytex Energy is trading at a lower price-to-earnings ratio than Paramount Resources, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Paramount Resources has a beta of 0.64, meaning that its share price is 36% less volatile than the S&P 500. Comparatively, Baytex Energy has a beta of 0.39, meaning that its share price is 61% less volatile than the S&P 500.

Profitability

This table compares Paramount Resources and Baytex Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Paramount Resources	149.02%	1.53%	1.15%
Baytex Energy	-16.96%	-5.44%	-3.07%

Summary

Paramount Resources beats Baytex Energy on 12 of the 15 factors compared between the two stocks.

About Paramount Resources

Paramount Resources Ltd. explores for and develops conventional and unconventional petroleum and natural gas reserves and resources in Canada. The company holds interests in the Karr and Wapiti Montney properties covering an area of 109,000 net acres located south of the city of Grande Prairie, Alberta; Kaybob North Duvernay development and natural gas producing properties covering an area of 124,000 net acres located in west-central Alberta; and Willesden Green Duvernay development in central Alberta and shale gas producing properties in the Horn River Basin in northeast British Columbia covering an area of 249,000 net acres. The company was founded in 1976 and is based 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.