Expand Energy (NASDAQ:EXE – Get Free Report) and Gran Tierra Energy (NYSE:GTE – Get Free Report) are both energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, profitability, institutional ownership, earnings, risk, dividends and analyst recommendations.
Profitability
This table compares Expand Energy and Gran Tierra Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Expand Energy | 19.78% | 10.69% | 7.13% |
| Gran Tierra Energy | 7.17% | 11.36% | 3.28% |
Insider and Institutional Ownership
97.9% of Expand Energy shares are owned by institutional investors. Comparatively, 31.7% of Gran Tierra Energy shares are owned by institutional investors. 0.2% of Expand Energy 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, endowments and hedge funds believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares Expand 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 | |
| Expand Energy | $12.12 billion | 1.69 | $1.82 billion | $11.54 | 7.68 |
| Gran Tierra Energy | $638.42 million | 0.54 | -$6.29 million | ($7.88) | -1.24 |
Expand Energy has higher revenue and earnings than Gran Tierra Energy. Gran Tierra Energy is trading at a lower price-to-earnings ratio than Expand Energy, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Expand Energy has a beta of 0.4, suggesting that its share price is 60% less volatile than the S&P 500. Comparatively, Gran Tierra Energy has a beta of 0.25, suggesting that its share price is 75% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings and price targets for Expand Energy and Gran Tierra Energy, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Expand Energy | 0 | 5 | 15 | 3 | 2.91 |
| Gran Tierra Energy | 0 | 0 | 2 | 1 | 3.33 |
Expand Energy presently has a consensus price target of $123.00, suggesting a potential upside of 38.78%. Gran Tierra Energy has a consensus price target of $9.72, suggesting a potential downside of 0.66%. Given Expand Energy’s higher probable upside, equities analysts plainly believe Expand Energy is more favorable than Gran Tierra Energy.
Summary
Expand Energy beats Gran Tierra Energy on 12 of the 15 factors compared between the two stocks.
About Expand Energy
Expand Energy Corporation is an independent natural gas exploration and production company focused on developing U.S. shale resources. Its activities include acquiring, exploring and operating oil and natural gas properties, with natural gas as its primary product. The company’s operations are concentrated in the Haynesville region of Louisiana and the Appalachia region, which includes the Marcellus and Utica formations. Its production supports the domestic natural gas market and related energy infrastructure.
About Gran Tierra Energy
Gran Tierra Energy Inc. is an independent energy company focused on exploring for, developing and producing oil and natural gas. Its operations include producing fields as well as exploration prospects, with crude oil as a key product. Founded in 2005 and based in Calgary, Alberta, the company has built a portfolio spanning Colombia, Ecuador and Canada. Its activities include operating and developing oil and gas assets and pursuing exploration opportunities in these markets.
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