Head-To-Head Contrast: Par Pacific (NYSE:PARR) versus California Resources (OTCMKTS:CRCQQ)

California Resources (OTCMKTS:CRCQQ) and Par Pacific (NYSE:PARR) are both small-cap oils/energy companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, dividends, analyst recommendations, risk, institutional ownership, earnings and valuation.

Valuation and Earnings

This table compares California Resources and Par Pacific’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
California Resources	$2.63 billion	0.00	-$28.00 million	N/A	N/A
Par Pacific	$8.23 billion	0.15	$728.64 million	$7.99	2.73

Par Pacific has higher revenue and earnings than California Resources.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
California Resources	-95.33%	-4.31%	-3.78%
Par Pacific	5.43%	26.40%	8.51%

Institutional and Insider Ownership

35.7% of California Resources shares are held by institutional investors. Comparatively, 92.2% of Par Pacific shares are held by institutional investors. 4.1% of California Resources shares are held by insiders. Comparatively, 4.4% of Par Pacific shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for California Resources and Par Pacific, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
California Resources	0	0	0	0	N/A
Par Pacific	0	3	3	0	2.50

Par Pacific has a consensus target price of $33.17, indicating a potential upside of 51.86%. Given Par Pacific’s higher probable upside, analysts plainly believe Par Pacific is more favorable than California Resources.

Summary

Par Pacific beats California Resources on 11 of the 11 factors compared between the two stocks.

About California Resources

California Resources Corporation operates as an oil and natural gas exploration and production company in the State of California. The company sells crude oil, natural gas, and natural gas liquids to marketers, California refineries, and other purchasers that have access to transportation and storage facilities. It holds interests in approximately 2.2 million net acres of mineral acreage. As of December 31, 2019, the company had net proved reserves of 644 million barrels of oil equivalent. It also engages in the generation and sale of electricity to the grid and utility customers. The company was founded in 2014 and is based in Los Angeles, California. On July 15, 2020, California Resources Corporation, along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas.

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.