Gran Tierra Energy (NYSE:GTE – Get Free Report) and Obsidian Energy (OTCMKTS:OBELF – Get Free Report) are both small-cap energy companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, profitability, earnings and analyst recommendations.
Profitability
This table compares Gran Tierra Energy and Obsidian Energy’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% |
| Obsidian Energy | 99.13% | 78.07% | 35.32% |
Institutional and Insider Ownership
31.7% of Gran Tierra Energy shares are owned by institutional investors. Comparatively, 0.0% of Obsidian Energy shares are owned by institutional investors. 6.1% of Gran Tierra Energy shares are owned by company 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 Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Gran Tierra Energy | 0 | 1 | 1 | 0 | 2.50 |
| Obsidian Energy | 0 | 0 | 0 | 0 | 0.00 |
Volatility and Risk
Gran Tierra Energy has a beta of 0.84, meaning that its share price is 16% less volatile than the S&P 500. Comparatively, Obsidian Energy has a beta of 2.47, meaning that its share price is 147% more volatile than the S&P 500.
Earnings and Valuation
This table compares Gran Tierra Energy and Obsidian Energy”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Gran Tierra Energy | $621.68 million | 0.24 | -$6.29 million | ($1.90) | -2.19 |
| Obsidian Energy | $220.00 million | 2.23 | -$576.07 million | $4.17 | 1.46 |
Gran Tierra Energy has higher revenue and earnings than Obsidian Energy. Gran Tierra Energy is trading at a lower price-to-earnings ratio than Obsidian Energy, indicating that it is currently the more affordable of the two stocks.
Summary
Gran Tierra Energy beats Obsidian Energy on 7 of the 13 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 Obsidian Energy
Obsidian Energy Ltd. is an exploration and production company. The firm engages in exploring, developing, and holds interests in oil and natural gas properties and related production infrastructure in the Western Canada Sedimentary Basin directly and through investments in securities of subsidiaries holding such interests. Its property portfolio includes Cardium, Viking, and Peace River. The company was founded on December 27, 1979 and is headquartered in Calgary, Canada.
Receive News & Ratings for Gran Tierra Energy Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Gran Tierra Energy and related companies with MarketBeat.com's FREE daily email newsletter.
