Financial Analysis: Talos Energy (NYSE:TALO) & Woodside Energy Group (NYSE:WDS)

Woodside Energy Group (NYSE:WDS) and Talos Energy (NYSE:TALO) are both energy companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, earnings, dividends and institutional ownership.

Profitability

This table compares Woodside Energy Group and Talos Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Woodside Energy Group	N/A	N/A	N/A
Talos Energy	3.95%	-1.98%	-0.86%

Valuation & Earnings

This table compares Woodside Energy Group and Talos Energy”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Woodside Energy Group	$13.18 billion	1.86	$1.66 billion	$0.82	15.72
Talos Energy	$1.97 billion	0.65	$187.33 million	($0.51)	-14.16

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

Analyst Recommendations

This is a summary of current recommendations for Woodside Energy Group and Talos Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Woodside Energy Group	0	5	1	0	2.17
Talos Energy	0	2	6	0	2.75

Talos Energy has a consensus price target of $14.38, suggesting a potential upside of 99.10%. Given Talos Energy’s stronger consensus rating and higher probable upside, analysts clearly believe Talos Energy is more favorable than Woodside Energy Group.

Institutional & Insider Ownership

3.2% of Woodside Energy Group shares are held by institutional investors. Comparatively, 89.3% of Talos Energy shares are held by institutional investors. 0.0% of Woodside Energy Group shares are held by insiders. Comparatively, 0.8% of Talos Energy shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

Woodside Energy Group has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500. Comparatively, Talos Energy has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500.

About Woodside Energy Group

Woodside Energy Group Ltd engages in the exploration, evaluation, development, production, and marketing of hydrocarbons in the Asia Pacific, Africa, the Americas, and the Europe. The company produces liquefied natural gas, pipeline gas, crude oil and condensate, and natural gas liquids. It holds interests in the Pluto LNG, North West Shelf, Wheatstone and Julimar-Brunello, Bass Strait, Ngujima-Yin FPSO, Okha FPSO, Pyrenees FPSO, Macedon, Shenzi, Mad dog, Greater Angostura, as well as Scarborough, Sangomar, Trion, Calypso, Browse, Liard, Atlantis, Woodside Solar opportunity, and Sunrise and Troubadour. The company involves in development of new energy products and carbon services. The company was formerly known as Woodside Petroleum Ltd and changed its name to Woodside Energy Group Ltd in May 2022. Woodside Energy Group Ltd was founded in 1954 and is headquartered in Perth, Australia.

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.