Canadian Natural Resources (NYSE:CNQ – Get Free Report) and Gran Tierra Energy (NYSE:GTE – Get Free Report) are both energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, dividends, profitability, analyst recommendations, valuation, earnings and risk.
Risk and Volatility
Canadian Natural Resources has a beta of 0.47, indicating that its stock price is 53% less volatile than the S&P 500. Comparatively, Gran Tierra Energy has a beta of 0.19, indicating that its stock price is 81% less volatile than the S&P 500.
Institutional and Insider Ownership
74.0% of Canadian Natural Resources shares are owned by institutional investors. Comparatively, 31.7% of Gran Tierra Energy shares are owned by institutional investors. 5.0% of Canadian Natural Resources shares are owned by company insiders. Comparatively, 5.8% of Gran Tierra Energy shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Profitability
| Net Margins | Return on Equity | Return on Assets | |
| Canadian Natural Resources | 22.78% | 23.91% | 11.45% |
| Gran Tierra Energy | 7.17% | 11.36% | 3.28% |
Analyst Recommendations
This is a breakdown of current recommendations for Canadian Natural Resources and Gran Tierra Energy, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Canadian Natural Resources | 0 | 5 | 7 | 0 | 2.58 |
| Gran Tierra Energy | 0 | 0 | 2 | 1 | 3.33 |
Canadian Natural Resources presently has a consensus target price of $57.00, indicating a potential upside of 13.95%. Gran Tierra Energy has a consensus target price of $9.72, indicating a potential downside of 9.87%. Given Canadian Natural Resources’ higher probable upside, research analysts plainly believe Canadian Natural Resources is more favorable than Gran Tierra Energy.
Valuation & Earnings
This table compares Canadian Natural Resources and Gran Tierra Energy”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Canadian Natural Resources | $31.61 billion | 3.26 | $7.74 billion | $4.05 | 12.35 |
| Gran Tierra Energy | $638.42 million | 0.60 | -$6.29 million | ($7.25) | -1.49 |
Canadian Natural Resources has higher revenue and earnings than Gran Tierra Energy. Gran Tierra Energy is trading at a lower price-to-earnings ratio than Canadian Natural Resources, indicating that it is currently the more affordable of the two stocks.
Summary
Canadian Natural Resources beats Gran Tierra Energy on 12 of the 15 factors compared between the two stocks.
About Canadian Natural Resources
Canadian Natural Resources Limited acquires, explores for, develops, produces, markets, and sells crude oil, natural gas, and natural gas liquids (NGLs). The company offers light and medium crude oil, primary heavy crude oil, Pelican Lake heavy crude oil, bitumen (thermal oil), and synthetic crude oil (SCO). The company’s midstream assets include two pipeline systems; and a 50% working interest in an 84-megawatt cogeneration plant at Primrose. It operates primarily in Western Canada; the United Kingdom portion of the North Sea; and Offshore Africa. The company was formerly known as AEX Minerals Corporation and changed its name to Canadian Natural Resources Limited in December 1975. Canadian Natural Resources Limited was incorporated in 1973 and is headquartered in Calgary, Canada.
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.
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