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

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

Analyst Ratings

This is a summary of current recommendations for Freehold Royalties and Gear Energy, as reported 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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Freehold Royalties	$225.88 million	7.15	$109.07 million	$0.55	17.91
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.

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

Institutional & Insider Ownership

40.0% of Gear Energy shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

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.