Gran Tierra Energy (NYSE:GTE – Get Free Report) and Par Pacific (NYSE:PARR – Get Free Report) are both energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, valuation, analyst recommendations, institutional ownership, profitability and dividends.
Volatility and Risk
Gran Tierra Energy has a beta of 0.19, suggesting that its share price is 81% less volatile than the S&P 500. Comparatively, Par Pacific has a beta of 0.77, suggesting that its share price is 23% less volatile than the S&P 500.
Earnings & Valuation
This table compares Gran Tierra Energy and Par Pacific”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Gran Tierra Energy | $638.42 million | 0.59 | -$6.29 million | ($7.25) | -1.46 |
| Par Pacific | $8.62 billion | 0.47 | $369.39 million | $17.14 | 4.76 |
Par Pacific has higher revenue and earnings than Gran Tierra Energy. Gran Tierra Energy is trading at a lower price-to-earnings ratio than Par Pacific, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
31.7% of Gran Tierra Energy shares are owned by institutional investors. Comparatively, 92.2% of Par Pacific shares are owned by institutional investors. 5.8% of Gran Tierra Energy shares are owned by insiders. Comparatively, 3.6% of Par Pacific shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Analyst Ratings
This is a summary of current recommendations and price targets for Gran Tierra Energy and Par Pacific, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Gran Tierra Energy | 0 | 0 | 2 | 1 | 3.33 |
| Par Pacific | 0 | 1 | 11 | 1 | 3.00 |
Gran Tierra Energy presently has a consensus target price of $9.72, indicating a potential downside of 7.99%. Par Pacific has a consensus target price of $84.29, indicating a potential upside of 3.40%. Given Par Pacific’s higher probable upside, analysts clearly believe Par Pacific is more favorable than Gran Tierra Energy.
Profitability
This table compares Gran Tierra Energy and Par Pacific’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Gran Tierra Energy | 7.17% | 11.36% | 3.28% |
| Par Pacific | 9.94% | 56.19% | 21.61% |
Summary
Par Pacific beats Gran Tierra Energy on 10 of the 14 factors compared between the two stocks.
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.
About Par Pacific
Par Pacific Holdings, Inc. owns and operates energy and infrastructure businesses. The company operates through Refining, Retail, and Logistics segments. The Refining segment owns and operates refineries that produce gasoline, distillate, asphalt, and other products primarily for consumption in Kapolei, Hawaii, Newcastle, Wyoming, Tacoma, Washington, and Billings, Montana. The Retail segment operates fuel retail outlets, which sell merchandise, such as soft drinks, prepared foods, and other sundries in Hawaii under the Hele, 76, and nomnom brands; and gasoline, diesel, and retail merchandise in Washington and Idaho. The Logistics segment owns and operates terminals, pipelines, single point mooring, marine vessels, storage facilities, loading and truck racks, and rail facilities to distribute ethanol, petroleum, and refined products throughout Hawaii, the United States West Coast, Washington, the Dakotas, and Wyoming; and a jet fuel storage facility and pipeline that serves Ellsworth Air Force Base in South Dakota. It also holds interest in refined products pipeline. In addition, the company owns and operates a marine terminal, a unit train-capable rail loading terminal; a truck rack, and a proprietary pipeline that serves Joint Base Lewis McChord. The company was formerly known as Par Petroleum Corporation and changed its name to Par Pacific Holdings, Inc. in October 2015. Par Pacific Holdings, Inc. was incorporated in 1984 and is headquartered in Houston, Texas.
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