Contrasting Gran Tierra Energy (NYSE:GTE) and BP (NYSE:BP)

BP (NYSE:BP) and Gran Tierra Energy (NYSE:GTE) are both energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, institutional ownership, dividends, risk, valuation and profitability.

Insider & Institutional Ownership

11.0% of BP shares are owned by institutional investors. Comparatively, 31.7% of Gran Tierra Energy shares are owned by institutional investors. 1.0% of BP 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 large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk and Volatility

BP has a beta of 0.2, indicating that its share price is 80% less volatile than the S&P 500. Comparatively, Gran Tierra Energy has a beta of 0.37, indicating that its share price is 63% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for BP and Gran Tierra Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BP	2	8	15	1	2.58
Gran Tierra Energy	0	0	2	1	3.33

BP currently has a consensus target price of $49.44, suggesting a potential upside of 1.08%. Gran Tierra Energy has a consensus target price of $9.72, suggesting a potential downside of 15.58%. Given BP’s higher possible upside, equities research analysts clearly believe BP is more favorable than Gran Tierra Energy.

Valuation and Earnings

This table compares BP and Gran Tierra Energy”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BP	$217.16 billion	0.59	$5.37 billion	$2.05	23.86
Gran Tierra Energy	$638.42 million	0.64	-$6.29 million	($7.25)	-1.59

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 BP and Gran Tierra Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BP	N/A	N/A	N/A
Gran Tierra Energy	7.17%	11.36%	3.28%

Summary

Gran Tierra Energy beats BP on 8 of the 14 factors compared between the two stocks.

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.

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.