Contrasting Gear Energy (OTCMKTS:GENGF) and Freehold Royalties (OTCMKTS:FRHLF)

Freehold Royalties (OTCMKTS:FRHLF) and Gear Energy (OTCMKTS:GENGF) are both energy companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.

Profitability

This table compares Freehold Royalties and Gear Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Freehold Royalties	37.26%	11.47%	8.56%
Gear Energy	N/A	N/A	N/A

Earnings and Valuation

This table compares Freehold Royalties and Gear Energy”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Freehold Royalties	$225.88 million	7.34	$109.07 million	$0.55	18.39
Gear Energy	N/A	N/A	N/A	$0.26	1.29

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

Institutional and Insider Ownership

40.0% of Gear Energy shares are held by institutional investors. 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 recent ratings and recommmendations for Freehold Royalties and Gear Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Freehold Royalties	0	1	1	0	2.50
Gear Energy	0	0	0	0	0.00

Summary

Freehold Royalties beats Gear Energy on 8 of the 9 factors compared between the two stocks.

About Freehold Royalties

Freehold Royalties Ltd. engages in the acquiring and managing royalty interests in the crude oil, natural gas, natural gas liquids, and potash properties in Western Canada and the United States. Freehold Royalties Ltd. was founded in 1996 and is headquartered in Calgary, Canada.

About Gear Energy

Gear Energy Ltd., an exploration and production company, engages in the acquiring, developing, and holding of interests in petroleum and natural gas properties and assets in Canada. The company's oil properties are located in Central Alberta, West Central Saskatchewan, and Southeast Saskatchewan. Gear Energy Ltd. is headquartered in Calgary, Canada.