Gran Tierra Energy (NYSE:GTE – Get Free Report) and BP (NYSE:BP – Get Free Report) are both energy companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, risk, dividends, valuation and profitability.
Analyst Ratings
This is a summary of recent ratings and target prices for Gran Tierra Energy and BP, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Gran Tierra Energy | 0 | 0 | 2 | 1 | 3.33 |
| BP | 2 | 8 | 14 | 1 | 2.56 |
Gran Tierra Energy presently has a consensus price target of $9.72, indicating a potential downside of 5.49%. BP has a consensus price target of $49.90, indicating a potential upside of 5.31%. Given BP’s higher probable upside, analysts clearly believe BP is more favorable than Gran Tierra Energy.
Earnings and Valuation
This table compares Gran Tierra Energy and BP”s top-line 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 | 0.57 | -$6.29 million | ($7.25) | -1.42 |
| BP | $237.14 billion | 0.52 | $55.00 million | $3.40 | 13.94 |
BP has higher revenue and earnings than Gran Tierra Energy. Gran Tierra Energy is trading at a lower price-to-earnings ratio than BP, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Gran Tierra Energy and BP’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% |
| BP | 2.49% | 16.63% | 4.39% |
Institutional & Insider Ownership
31.7% of Gran Tierra Energy shares are owned by institutional investors. Comparatively, 11.0% of BP shares are owned by institutional investors. 5.8% of Gran Tierra Energy shares are owned by insiders. Comparatively, 1.0% of BP shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Risk and Volatility
Gran Tierra Energy has a beta of 0.37, meaning that its share price is 63% less volatile than the S&P 500. Comparatively, BP has a beta of 0.2, meaning that its share price is 80% less volatile than the S&P 500.
Summary
BP beats Gran Tierra Energy on 8 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 BP
BP p.l.c. provides carbon products and services. The company operates through Gas & Low Carbon Energy, Oil Production & Operations, and Customers & Products segments. It engages in the production of natural gas, and integrated gas and power; trading of gas; operation of onshore and offshore wind power, as well as hydrogen and carbon capture and storage facilities; trading and marketing of renewable and non-renewable power; and production of crude oil. In addition, the company involved in convenience and retail fuel, EV charging, Castrol lubricant, aviation, B2B, and midstream businesses; refining and oil trading; and bioenergy business. The company was founded in 1908 and is headquartered in London, the United Kingdom.
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