Critical Analysis: SandRidge Energy (OTCMKTS:SDOCQ) and Gran Tierra Energy (NYSE:GTE)

Gran Tierra Energy (NYSE:GTE) and SandRidge Energy (OTCMKTS:SDOCQ) are both small-cap energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, risk, dividends, earnings and valuation.

Valuation & Earnings

This table compares Gran Tierra Energy and SandRidge Energy”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	$614.07 million	0.22	-$6.29 million	($2.51)	-1.55
SandRidge Energy	N/A	N/A	N/A	N/A	N/A

SandRidge Energy has lower revenue, but higher earnings than Gran Tierra Energy.

Analyst Ratings

This is a summary of current ratings and target prices for Gran Tierra Energy and SandRidge Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gran Tierra Energy	0	1	2	0	2.67
SandRidge Energy	0	0	0	0	0.00

Gran Tierra Energy currently has a consensus price target of $5.45, indicating a potential upside of 39.74%. Given Gran Tierra Energy’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Gran Tierra Energy is more favorable than SandRidge Energy.

Profitability

This table compares Gran Tierra Energy and SandRidge 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%
SandRidge Energy	N/A	N/A	N/A

Insider & Institutional Ownership

31.7% of Gran Tierra Energy shares are held by institutional investors. 6.5% of Gran Tierra Energy shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Summary

Gran Tierra Energy beats SandRidge Energy on 9 of the 9 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 SandRidge Energy

SandRidge Energy, Inc. is an oil and natural gas company. The Company focuses on exploration and production activities in the Mid-Continent and Rockies regions of the United States. As of December 31, 2016, the Company had 3,122 gross producing wells and approximately 1,364,000 gross total acres under lease. The Company’s primary areas of operation are the Mid-Continent area of Oklahoma and Kansas and the Niobrara Shale in the Colorado Rockies. As of December 31, 2016, the Company held interests in approximately 1,185,000 gross leasehold acres located primarily in Oklahoma and Kansas. As of December 31, 2016, the Company’s interests in the Mid-Continent included 1,972 gross producing wells. As of December 31, 2016, the Company had approximately 1,087,000 gross acres under lease and 1,471 gross producing wells in the Mississippian formation. As of December 31, 2016, the Company’s Rockies properties consisted of approximately 140,000 gross acres and 25 gross producing wells.