Reviewing Centennial Resource Development (NASDAQ:CDEV) & Gran Tierra Energy (NYSE:GTE)

Gran Tierra Energy (NYSE:GTEGet Rating) and Centennial Resource Development (NASDAQ:CDEVGet Rating) are both oils/energy companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, profitability, valuation, earnings and risk.

Earnings & Valuation

This table compares Gran Tierra Energy and Centennial Resource Development’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Gran Tierra Energy $473.72 million 1.33 $42.48 million $0.12 14.33
Centennial Resource Development $1.03 billion 2.60 $138.18 million $0.42 22.38

Centennial Resource Development has higher revenue and earnings than Gran Tierra Energy. Gran Tierra Energy is trading at a lower price-to-earnings ratio than Centennial Resource Development, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Gran Tierra Energy and Centennial Resource Development’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gran Tierra Energy 8.97% 9.01% 1.84%
Centennial Resource Development 13.42% 7.83% 5.30%

Insider & Institutional Ownership

20.0% of Gran Tierra Energy shares are held by institutional investors. Comparatively, 78.1% of Centennial Resource Development shares are held by institutional investors. 5.4% of Gran Tierra Energy shares are held by insiders. Comparatively, 29.2% of Centennial Resource Development shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings for Gran Tierra Energy and Centennial Resource Development, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gran Tierra Energy 0 0 0 0 N/A
Centennial Resource Development 0 6 4 0 2.40

Centennial Resource Development has a consensus price target of $9.30, suggesting a potential downside of 1.12%. Given Centennial Resource Development’s higher probable upside, analysts clearly believe Centennial Resource Development is more favorable than Gran Tierra Energy.

Volatility and Risk

Gran Tierra Energy has a beta of 1.78, meaning that its stock price is 78% more volatile than the S&P 500. Comparatively, Centennial Resource Development has a beta of 5.56, meaning that its stock price is 456% more volatile than the S&P 500.

Summary

Centennial Resource Development beats Gran Tierra Energy on 12 of the 13 factors compared between the two stocks.

Gran Tierra Energy Company Profile (Get Rating)

Gran Tierra Energy Inc., together with its subsidiaries, engages in the exploration and production of oil and gas properties in Colombia and Ecuador. As of December 31, 2021, it had total proved undeveloped reserves of 24.8 million barrels of oil equivalent in Colombia. The company was incorporated in 2003 and is headquartered in Calgary, Canada.

Centennial Resource Development Company Profile (Get Rating)

Centennial Resource Development, Inc., an independent oil and natural gas company, focuses on the development of crude oil and related liquids-rich natural gas reserves in the United States. Its assets primarily focus on the Delaware Basin, a sub-basin of the Permian Basin. The company's properties consist of acreage blocks primarily in Reeves County, West Texas and Lea County, New Mexico. As of December 31, 2021, it leased or acquired approximately 73,675 net acres; and owned 991 net mineral acres in the Delaware Basin. The company was formerly known as Silver Run Acquisition Corporation and changed its name to Centennial Resource Development, Inc. in October 2016. The company was incorporated in 2015 and is headquartered in Denver, Colorado.

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