Genesis Energy (NYSE:GEL) and HighPeak Energy (NASDAQ:HPK) Financial Analysis

HighPeak Energy (NASDAQ:HPK) and Genesis Energy (NYSE:GEL) are both small-cap energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, valuation, risk, earnings, analyst recommendations, dividends and institutional ownership.

Analyst Ratings

This is a breakdown of current recommendations and price targets for HighPeak Energy and Genesis Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
HighPeak Energy	1	1	0	1	2.33
Genesis Energy	0	1	2	0	2.67

HighPeak Energy currently has a consensus target price of $12.00, indicating a potential upside of 25.65%. Genesis Energy has a consensus target price of $18.00, indicating a potential upside of 24.58%. Given HighPeak Energy’s higher possible upside, research analysts clearly believe HighPeak Energy is more favorable than Genesis Energy.

Insider & Institutional Ownership

24.1% of HighPeak Energy shares are held by institutional investors. Comparatively, 66.8% of Genesis Energy shares are held by institutional investors. 5.6% of HighPeak Energy shares are held by insiders. Comparatively, 0.7% of Genesis Energy shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk & Volatility

HighPeak Energy has a beta of 0.36, suggesting that its share price is 64% less volatile than the S&P 500. Comparatively, Genesis Energy has a beta of 0.83, suggesting that its share price is 17% less volatile than the S&P 500.

Profitability

This table compares HighPeak Energy and Genesis Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
HighPeak Energy	-10.52%	-1.44%	-0.71%
Genesis Energy	4.29%	55.96%	1.58%

Valuation & Earnings

This table compares HighPeak Energy and Genesis Energy”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
HighPeak Energy	$863.36 million	1.40	$18.96 million	($0.79)	-12.09
Genesis Energy	$1.63 billion	1.08	-$440.40 million	$0.19	76.04

HighPeak Energy has higher earnings, but lower revenue than Genesis Energy. HighPeak Energy is trading at a lower price-to-earnings ratio than Genesis Energy, indicating that it is currently the more affordable of the two stocks.

Summary

Genesis Energy beats HighPeak Energy on 10 of the 15 factors compared between the two stocks.

About HighPeak Energy

HighPeak Energy, Inc., an independent oil and natural gas company, engages in the exploration, development, and production of crude oil, natural gas, and natural gas liquids reserves in the Permian Basin in West Texas and Eastern New Mexico. The company was incorporated in 2019 and is headquartered in Fort Worth, Texas.

About Genesis Energy

Genesis Energy, L.P. provides integrated suite of midstream services in crude oil and natural gas industry in the United States. It operates through Offshore Pipeline Transportation, Soda and Sulfur Services, Marine Transportation, and Onshore Facilities and Transportation segments. The Offshore Pipeline Transportation segment engages in offshore crude oil and natural gas pipeline transportation and handling operations, as well as deep water pipeline servicing. This segment also owns interests in offshore crude oil and natural gas pipeline systems, platforms, and related infrastructure. The Soda and Sulfur Services segment produces, markets, and sells soda ash; and provides sulfur removal services. This segment also owns and operates soda ash production facilities, underground trona ore mines and brine solution mining operations and related equipment, and logistics and other assets; and sells sodium hydrosulfide and caustic soda to industrial and commercial companies involved in the mining of base metals. The Marine Transportation segment offers waterborne transportation of petroleum and crude oil in North America. This segment owns a fleet of 91 barges and 42 push/tow boats. The Onshore Facilities and Transportation segment offers onshore facilities and transportation services to crude oil refineries and producers by purchasing, transporting, storing, blending, and marketing crude oil and refined products; and operates trucks, trailers, railcars, and terminals and tankage in various locations along the Gulf Coast. This segment also transports crude oil, as well as owns four onshore crude oil pipeline systems and four operational crude oil rail unloading facilities. The company was incorporated in 1996 and is headquartered in Houston, Texas.