Analyzing 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 business? We will contrast the two businesses based on the strength of their earnings, profitability, institutional ownership, valuation, dividends, analyst recommendations and risk.

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

Analyst Recommendations

This is a breakdown of recent ratings for Gran Tierra Energy and SandRidge Energy, as reported by MarketBeat.com.

	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 target price of $5.45, indicating a potential upside of 33.91%. Given Gran Tierra Energy’s stronger consensus rating and higher probable upside, analysts plainly believe Gran Tierra Energy is more favorable than SandRidge Energy.

Institutional and Insider Ownership

31.7% of Gran Tierra Energy shares are owned by institutional investors. 6.1% of Gran Tierra Energy shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Gran Tierra Energy and SandRidge Energy”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gran Tierra Energy	$614.07 million	0.23	-$6.29 million	($2.51)	-1.62
SandRidge Energy	N/A	N/A	N/A	N/A	N/A

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

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.