Contrasting Ecopetrol (NYSE:EC) and Barnwell Industries (NYSE:BRN)

Ecopetrol (NYSE:ECGet Rating) and Barnwell Industries (NYSE:BRNGet Rating) are both oils/energy companies, but which is the better business? We will compare the two companies based on the strength of their profitability, analyst recommendations, dividends, earnings, risk, valuation and institutional ownership.

Profitability

This table compares Ecopetrol and Barnwell Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ecopetrol 17.84% 51.84% 19.24%
Barnwell Industries 29.07% 53.58% 23.64%

Institutional & Insider Ownership

1.4% of Ecopetrol shares are owned by institutional investors. Comparatively, 9.4% of Barnwell Industries shares are owned by institutional investors. 12.9% of Barnwell Industries shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Ecopetrol and Barnwell Industries’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ecopetrol $119.45 billion 0.18 $20.34 billion $1.47 7.09
Barnwell Industries $18.11 million 1.72 $6.25 million $0.73 4.27

Ecopetrol has higher revenue and earnings than Barnwell Industries. Barnwell Industries is trading at a lower price-to-earnings ratio than Ecopetrol, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Ecopetrol has a beta of 1.59, indicating that its stock price is 59% more volatile than the S&P 500. Comparatively, Barnwell Industries has a beta of 0.39, indicating that its stock price is 61% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Ecopetrol and Barnwell Industries, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ecopetrol 1 2 0 0 1.67
Barnwell Industries 0 0 0 0 N/A

Ecopetrol currently has a consensus target price of $15.60, suggesting a potential upside of 49.71%. Given Ecopetrol’s higher probable upside, equities analysts plainly believe Ecopetrol is more favorable than Barnwell Industries.

Dividends

Ecopetrol pays an annual dividend of $1.46 per share and has a dividend yield of 14.0%. Barnwell Industries pays an annual dividend of $0.06 per share and has a dividend yield of 1.9%. Ecopetrol pays out 99.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Barnwell Industries pays out 8.2% of its earnings in the form of a dividend.

About Ecopetrol

(Get Rating)

Ecopetrol S.A. operates as an integrated energy company. The company operates through four segments: Exploration and Production; Transport and Logistics; Refining, Petrochemical and Biofuels; and Electric Power Transmission and Toll Roads Concessions. It engages in the exploration and production of oil and gas; transportation of crude oil, motor fuels, fuel oil, and other refined products, including diesel, jet, and biofuels; processing and refining crude oil; distribution of natural gas and LPG; sale of refined and petrochemical products; supplying of electric power transmission services; design, development, construction, operation, and maintenance of road and energy infrastructure projects; and supplying of information technology and telecommunications services. As of December 31, 2021, the company had approximately 9,127 kilometers of crude oil and multi-purpose pipelines. It also produces and commercializes polypropylene resins and compounds, and masterbatches; and offers industrial service sales to customers and specialized management services. It has operations in Colombia, the United States, Asia, Central America and the Caribbean, Europe, South America, and internationally. The company was formerly known as Empresa Colombiana de Petróleos and changed its name to Ecopetrol S.A. in June 2003. Ecopetrol S.A. was incorporated in 1948 and is based in Bogotá, Colombia.

About Barnwell Industries

(Get Rating)

Barnwell Industries, Inc. acquires, develops, produces, and sells oil and natural gas in Canada. It operates through three segments: Oil and Natural Gas, Land Investment, and Contract Drilling. The company acquires and develops crude and natural gas assets in the province of Alberta; and invests in land interests in Hawaii. It also owns and operates five water well drilling rigs, two pump rigs, and other ancillary drilling and pump equipment; drills water and water monitoring wells of varying depths; installs and repairs water pumping systems; and distributes trillium flow technologies. Barnwell Industries, Inc. was incorporated in 1956 and is headquartered in Honolulu, Hawaii.

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