Gran Tierra Energy (NYSE:GTE – Get Free Report) and Kosmos Energy (NYSE:KOS – Get Free Report) are both small-cap energy companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, risk, valuation, profitability, analyst recommendations, institutional ownership and dividends.
Institutional & Insider Ownership
31.7% of Gran Tierra Energy shares are owned by institutional investors. Comparatively, 95.3% of Kosmos Energy shares are owned by institutional investors. 5.8% of Gran Tierra Energy shares are owned by company insiders. Comparatively, 1.9% of Kosmos Energy shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a breakdown of current ratings and target prices for Gran Tierra Energy and Kosmos Energy, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Gran Tierra Energy | 0 | 0 | 2 | 1 | 3.33 |
| Kosmos Energy | 4 | 3 | 2 | 0 | 1.78 |
Gran Tierra Energy presently has a consensus target price of $9.72, suggesting a potential downside of 17.09%. Kosmos Energy has a consensus target price of $2.53, suggesting a potential downside of 12.20%. Given Kosmos Energy’s higher possible upside, analysts plainly believe Kosmos Energy is more favorable than Gran Tierra Energy.
Volatility and Risk
Gran Tierra Energy has a beta of 0.37, suggesting that its stock price is 63% less volatile than the S&P 500. Comparatively, Kosmos Energy has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500.
Earnings and Valuation
This table compares Gran Tierra Energy and Kosmos Energy”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Gran Tierra Energy | $638.42 million | 0.65 | -$6.29 million | ($7.25) | -1.62 |
| Kosmos Energy | $1.29 billion | 1.33 | -$699.79 million | ($1.19) | -2.42 |
Gran Tierra Energy has higher earnings, but lower revenue than Kosmos Energy. Kosmos Energy is trading at a lower price-to-earnings ratio than Gran Tierra Energy, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Gran Tierra Energy and Kosmos 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% |
| Kosmos Energy | -33.98% | -17.73% | -2.49% |
Summary
Gran Tierra Energy beats Kosmos Energy on 8 of the 14 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 Kosmos Energy
Kosmos Energy Ltd., together with its subsidiaries, engages in the exploration, development, and production of oil and gas along the Atlantic Margins in the United States. The company’s primary assets include production projects located in offshore Ghana, Equatorial Guinea, and the U.S. Gulf of Mexico, as well as gas projects located in offshore Mauritania and Senegal. It undertakes a proven basin exploration program in Equatorial Guinea and the U.S. Gulf of Mexico. Kosmos Energy Ltd. was founded in 2003 and is headquartered in Dallas, Texas.
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