Critical Survey: Gran Tierra Energy (NYSE:GTE) & Trans-Pacific Aerospace (OTCMKTS:TPAC)

Trans-Pacific Aerospace (OTCMKTS:TPAC) and Gran Tierra Energy (NYSE:GTE) are both small-cap aerospace companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, valuation, risk, institutional ownership, earnings, analyst recommendations and dividends.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Trans-Pacific Aerospace and Gran Tierra Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Trans-Pacific Aerospace	0	0	0	0	0.00
Gran Tierra Energy	0	3	1	0	2.25

Gran Tierra Energy has a consensus target price of $5.45, suggesting a potential upside of 5.93%. Given Gran Tierra Energy’s stronger consensus rating and higher probable upside, analysts clearly believe Gran Tierra Energy is more favorable than Trans-Pacific Aerospace.

Volatility & Risk

Trans-Pacific Aerospace has a beta of -0.15, meaning that its share price is 115% less volatile than the S&P 500. Comparatively, Gran Tierra Energy has a beta of 0.3, meaning that its share price is 70% less volatile than the S&P 500.

Valuation and Earnings

This table compares Trans-Pacific Aerospace and Gran Tierra Energy”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Trans-Pacific Aerospace	N/A	N/A	N/A	N/A	N/A
Gran Tierra Energy	$614.07 million	0.30	-$6.29 million	($2.51)	-2.05

Trans-Pacific Aerospace has higher earnings, but lower revenue than Gran Tierra Energy.

Profitability

This table compares Trans-Pacific Aerospace and Gran Tierra Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Trans-Pacific Aerospace	N/A	N/A	N/A
Gran Tierra Energy	7.17%	11.36%	3.28%

Institutional & Insider Ownership

31.7% of Gran Tierra Energy shares are owned by institutional investors. 0.1% of Trans-Pacific Aerospace shares are owned by insiders. Comparatively, 6.5% of Gran Tierra Energy 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.

Summary

Gran Tierra Energy beats Trans-Pacific Aerospace on 10 of the 10 factors compared between the two stocks.

About Trans-Pacific Aerospace

Trans-Pacific Aerospace Company, Inc. designs, manufactures, and sells aerospace component parts for commercial and military aircrafts, space vehicles, power plants, and surface and undersea vessels in the United States. It primarily offers self-lubricating spherical bearings, which are integral to the operation of commercial aircrafts and help with various flight-critical tasks, including aircraft flight controls and landing gear. The company was formerly known as Pinnacle Energy Corp. and changed its name to Trans-Pacific Aerospace Company, Inc. in March 2010. Trans-Pacific Aerospace Company, Inc. was founded in 2007 and is based in San Marino, California.

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.