Critical Review: GeoMet (GMET) and Ecopetrol (EC)
Ecopetrol (NYSE:EC) and GeoMet (OTCMKTS:GMET) are both oils/energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, earnings, valuation, dividends, institutional ownership, profitability and risk.
This table compares Ecopetrol and GeoMet’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings and price targets for Ecopetrol and GeoMet, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Ecopetrol presently has a consensus price target of $21.00, suggesting a potential downside of 1.78%.
Volatility & Risk
Ecopetrol has a beta of 1.56, indicating that its stock price is 56% more volatile than the S&P 500. Comparatively, GeoMet has a beta of 5.12, indicating that its stock price is 412% more volatile than the S&P 500.
Insider & Institutional Ownership
3.1% of Ecopetrol shares are held by institutional investors. 0.9% of GeoMet shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares Ecopetrol and GeoMet’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Ecopetrol||$18.77 billion||2.34||$10.77 billion||$1.09||19.61|
Ecopetrol has higher revenue and earnings than GeoMet.
Ecopetrol pays an annual dividend of $0.61 per share and has a dividend yield of 2.9%. GeoMet does not pay a dividend. Ecopetrol pays out 56.0% of its earnings in the form of a dividend.
Ecopetrol beats GeoMet on 6 of the 9 factors compared between the two stocks.
Ecopetrol S.A. operates as an integrated oil and gas company. It operates through three segments: Exploration and Production; Refining, Petrochemical, and Biofuels; and Transport and Logistics. The company produces crude oil and gas; and engages in the extraction, collection, treatment, storage and pumping or compression of hydrocarbons. It also transports and distributes hydrocarbons, derivatives, and products. The company has 8,500 kilometers of transportation pipeline systems. In addition, it commercializes crude oils and by-products, including fuel oil, virgin naphtha, cracked naphtha, aviation gasoline, and others; produces and markets polypropylene resin, compounds, and masterbatches; provides financing services; and offers refined and petrochemical products, as well as industrial service sales to customers. The company was formerly known as Empresa Colombiana de Petróleos and changed its name to Ecopetrol S.A. in June 2003. Ecopetrol S.A. was founded in 1948 and is based in Bogotá, Colombia.
GeoMet, Inc. does not have significant operations. Previously it was engaged in the exploration, development, and production of natural gas from coal seams. The company was formerly known as GeoMet Resources, Inc. and changed its name to GeoMet, Inc. in April 2005. GeoMet, Inc. was founded in 1985 and is headquartered in Houston, Texas.
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