Gran Tierra Energy (NYSE:GTE) versus BP (NYSE:BP) Head-To-Head Review

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

Valuation and Earnings

This table compares BP and Gran Tierra Energy”s 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%

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 insiders. Comparatively, 5.8% of Gran Tierra Energy shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility & Risk

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

Analyst Recommendations

This is a summary of current recommendations and price targets for BP and Gran Tierra Energy, as reported by MarketBeat.com.

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

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.