Kosmos Energy (NYSE:KOS – Get Free Report) and Gran Tierra Energy (NYSE:GTE – Get Free Report) are both energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, valuation, analyst recommendations, institutional ownership and risk.
Earnings and Valuation
This table compares Kosmos Energy 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 | |
| Kosmos Energy | N/A | N/A | N/A | ($1.19) | -2.34 |
| Gran Tierra Energy | $638.42 million | 0.64 | -$6.29 million | ($7.25) | -1.59 |
Kosmos Energy has higher earnings, but lower revenue than Gran Tierra Energy. Kosmos 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.
Institutional and Insider Ownership
95.3% of Kosmos Energy shares are held by institutional investors. Comparatively, 31.7% of Gran Tierra Energy shares are held by institutional investors. 1.9% of Kosmos Energy shares are held by insiders. Comparatively, 5.8% of Gran Tierra Energy shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares Kosmos Energy and Gran Tierra Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Kosmos Energy | N/A | N/A | N/A |
| Gran Tierra Energy | 7.17% | 11.36% | 3.28% |
Analyst Ratings
This is a breakdown of current ratings and target prices for Kosmos Energy and Gran Tierra Energy, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Kosmos Energy | 4 | 3 | 1 | 0 | 1.62 |
| Gran Tierra Energy | 0 | 0 | 2 | 1 | 3.33 |
Kosmos Energy presently has a consensus price target of $2.28, suggesting a potential downside of 17.87%. Gran Tierra Energy has a consensus price target of $9.72, suggesting a potential downside of 15.58%. Given Gran Tierra Energy’s stronger consensus rating and higher possible upside, analysts clearly believe Gran Tierra Energy is more favorable than Kosmos Energy.
Summary
Gran Tierra Energy beats Kosmos Energy on 10 of the 12 factors compared between the two stocks.
About Kosmos Energy
Kosmos Energy Ltd., together with its subsidiaries, engages in the exploration, development, and production of oil and gas along the Atlantic Margins in the United States. The company’s primary assets include production projects located in offshore Ghana, Equatorial Guinea, and the U.S. Gulf of Mexico, as well as gas projects located in offshore Mauritania and Senegal. It undertakes a proven basin exploration program in Equatorial Guinea and the U.S. Gulf of Mexico. Kosmos Energy Ltd. was founded in 2003 and is headquartered in Dallas, 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.
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