Head to Head Analysis: Par Pacific (NYSE:PARR) & Mexco Energy (NYSE:MXC)

Par Pacific (NYSE:PARR) and Mexco Energy (NYSE:MXC) 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 risk, earnings, analyst recommendations, dividends, valuation, institutional ownership and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Par Pacific	5.43%	26.40%	8.51%
Mexco Energy	20.37%	7.76%	7.25%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Par Pacific and Mexco Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Par Pacific	0	3	3	0	2.50
Mexco Energy	0	0	0	0	N/A

Par Pacific presently has a consensus price target of $34.50, suggesting a potential upside of 50.20%. Given Par Pacific’s higher probable upside, analysts clearly believe Par Pacific is more favorable than Mexco Energy.

Insider and Institutional Ownership

92.2% of Par Pacific shares are held by institutional investors. Comparatively, 5.9% of Mexco Energy shares are held by institutional investors. 4.4% of Par Pacific shares are held by insiders. Comparatively, 51.0% of Mexco Energy shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Par Pacific has a beta of 2, indicating that its share price is 100% more volatile than the S&P 500. Comparatively, Mexco Energy has a beta of 0.54, indicating that its share price is 46% less volatile than the S&P 500.

Earnings and Valuation

This table compares Par Pacific and Mexco Energy’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Par Pacific	$8.23 billion	0.16	$728.64 million	$7.99	2.87
Mexco Energy	$6.58 million	3.59	$1.35 million	$0.61	18.52

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

Summary

Par Pacific beats Mexco 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 Mexco Energy

Mexco Energy Corporation, an independent oil and gas company, engages in the acquisition, exploration, development, and production of natural gas, crude oil, condensate, and natural gas liquids in the United States. It owns partial interests in approximately 6,400 gross producing wells located in the states of Texas, New Mexico, Oklahoma, Louisiana, Alabama, Mississippi, Arkansas, Wyoming, Kansas, Colorado, Montana, Virginia, North Dakota, and Ohio. It also owned leasehold mineral, royalty, and other interests in approximately 2,768 net acres. The company was formerly known as Miller Oil Company and changed its name to Mexco Energy Corporation in April 1980. Mexco Energy Corporation was incorporated in 1972 and is based in Midland, Texas.