Analyzing Gran Tierra Energy (NYSE:GTE) & ConocoPhillips (NYSE:COP)
by Kim Johansen · The Markets DailyGran Tierra Energy (NYSE:GTE – Get Free Report) and ConocoPhillips (NYSE:COP – Get Free Report) are both energy companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, risk, valuation and profitability.
Volatility & Risk
Gran Tierra Energy has a beta of 0.37, indicating that its share price is 63% less volatile than the S&P 500. Comparatively, ConocoPhillips has a beta of 0.24, indicating that its share price is 76% less volatile than the S&P 500.
Insider and Institutional Ownership
31.7% of Gran Tierra Energy shares are owned by institutional investors. Comparatively, 82.4% of ConocoPhillips shares are owned by institutional investors. 5.8% of Gran Tierra Energy shares are owned by company insiders. Comparatively, 0.1% of ConocoPhillips shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares Gran Tierra Energy and ConocoPhillips’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Gran Tierra Energy | 7.17% | 11.36% | 3.28% |
| ConocoPhillips | 14.22% | 14.72% | 7.77% |
Analyst Recommendations
This is a summary of recent recommendations and price targets for Gran Tierra Energy and ConocoPhillips, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Gran Tierra Energy | 0 | 0 | 2 | 1 | 3.33 |
| ConocoPhillips | 2 | 6 | 17 | 2 | 2.70 |
Gran Tierra Energy currently has a consensus price target of $9.72, suggesting a potential downside of 16.84%. ConocoPhillips has a consensus price target of $145.00, suggesting a potential downside of 3.92%. Given ConocoPhillips’ higher probable upside, analysts plainly believe ConocoPhillips is more favorable than Gran Tierra Energy.
Valuation and Earnings
This table compares Gran Tierra Energy and ConocoPhillips”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Gran Tierra Energy | $638.42 million | 0.65 | -$6.29 million | ($7.25) | -1.61 |
| ConocoPhillips | $61.55 billion | 2.95 | $7.99 billion | $7.56 | 19.96 |
ConocoPhillips has higher revenue and earnings than Gran Tierra Energy. Gran Tierra Energy is trading at a lower price-to-earnings ratio than ConocoPhillips, indicating that it is currently the more affordable of the two stocks.
Summary
ConocoPhillips beats Gran Tierra Energy on 12 of the 15 factors compared between the two stocks.
About Gran Tierra Energy
Gran Tierra Energy Inc., together with its subsidiaries, engages in the exploration and production of oil and gas properties in Colombia and Ecuador. The company was founded in 2003 and is headquartered in Calgary, Canada.
About ConocoPhillips
ConocoPhillips explores for, produces, transports, and markets crude oil, bitumen, natural gas, liquefied natural gas (LNG), and natural gas liquids in the United States, Canada, China, Libya, Malaysia, Norway, the United Kingdom, and internationally. The company's portfolio includes unconventional plays in North America; conventional assets in North America, Europe, Asia, and Australia; global LNG developments; oil sands assets in Canada; and an inventory of global exploration prospects. ConocoPhillips was founded in 1917 and is headquartered in Houston, Texas.