Analyzing Gran Tierra Energy (NYSE:GTE) and Gulfport Energy (OTCMKTS:GPORQ)

Gulfport Energy (OTCMKTS:GPORQ) and Gran Tierra Energy (NYSE:GTE) are both energy companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, profitability, valuation and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Gulfport Energy	-144.45%	-93.72%	-3.48%
Gran Tierra Energy	7.17%	11.36%	3.28%

Valuation and Earnings

This table compares Gulfport Energy and Gran Tierra Energy”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gulfport Energy	$866.54 million	37.34	-$1.63 billion	($6.86)	-29.34
Gran Tierra Energy	$614.07 million	0.22	-$6.29 million	($2.51)	-1.53

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

Risk & Volatility

Gulfport Energy has a beta of 5.5, meaning that its stock price is 450% more volatile than the S&P 500. Comparatively, Gran Tierra Energy has a beta of 0.35, meaning that its stock price is 65% less volatile than the S&P 500.

Insider and Institutional Ownership

0.0% of Gulfport Energy shares are owned by institutional investors. Comparatively, 31.7% of Gran Tierra Energy shares are owned by institutional investors. 0.5% of Gulfport Energy shares are owned by insiders. Comparatively, 6.5% of Gran Tierra Energy shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and price targets for Gulfport Energy and Gran Tierra Energy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gulfport Energy	0	0	0	0	0.00
Gran Tierra Energy	0	1	2	0	2.67

Gran Tierra Energy has a consensus price target of $5.45, indicating a potential upside of 41.56%. Given Gran Tierra Energy’s stronger consensus rating and higher possible upside, analysts clearly believe Gran Tierra Energy is more favorable than Gulfport Energy.

Summary

Gran Tierra Energy beats Gulfport Energy on 11 of the 14 factors compared between the two stocks.

About Gulfport Energy

Gulfport Energy Corporation engages in the exploration, development, acquisition, and production of natural gas, crude oil, and natural gas liquids (NGL) in the United States. Its principal properties include Utica Shale covering an area of approximately 205,000 net reservoir acres primarily located in Eastern Ohio; and SCOOP covering an area of approximately 76,000 net reservoir acres primarily located in Oklahoma. As of December 31, 2020, it had 2.6 trillion cubic feet of natural gas equivalent of proved reserves; proved undeveloped reserves of 7 MMbbl of oil; and 923 Bcf of natural gas and 16 MMbbl of NGL. The company was incorporated in 1997 and is headquartered in Oklahoma City, Oklahoma. On November 13, 2020, Gulfport Energy 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 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.