Analyzing Gran Tierra Energy (NYSE:GTE) and Sanchez Energy (OTCMKTS:SNEC)

Sanchez Energy (OTCMKTS:SNECGet Free Report) and Gran Tierra Energy (NYSE:GTEGet Free Report) are both small-cap energy companies, but which is the better business? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, valuation, analyst recommendations and dividends.

Volatility & Risk

Sanchez Energy has a beta of 1.71, indicating that its share price is 71% more volatile than the S&P 500. Comparatively, Gran Tierra Energy has a beta of 0.35, indicating that its share price is 65% less volatile than the S&P 500.

Analyst Recommendations

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

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

Gran Tierra Energy has a consensus target price of $5.45, indicating a potential upside of 28.84%. Given Gran Tierra Energy’s stronger consensus rating and higher probable upside, analysts clearly believe Gran Tierra Energy is more favorable than Sanchez Energy.

Profitability

This table compares Sanchez Energy and Gran Tierra Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sanchez Energy 2.22% -18.15% 3.09%
Gran Tierra Energy 7.17% 11.36% 3.28%

Insider and Institutional Ownership

0.6% of Sanchez Energy shares are owned by institutional investors. Comparatively, 31.7% of Gran Tierra Energy shares are owned by institutional investors. 11.1% of Sanchez Energy shares are owned by company insiders. Comparatively, 6.5% of Gran Tierra 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.

Valuation & Earnings

This table compares Sanchez Energy and Gran Tierra Energy”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Sanchez Energy $1.06 billion 0.00 $85.21 million N/A N/A
Gran Tierra Energy $614.07 million 0.24 -$6.29 million ($2.51) -1.69

Sanchez Energy has higher revenue and earnings than Gran Tierra Energy.

Summary

Gran Tierra Energy beats Sanchez Energy on 7 of the 11 factors compared between the two stocks.

About Sanchez Energy

(Get Free Report)

Sanchez Energy Corporation, an independent exploration and production company, focuses on the acquisition and development of onshore unconventional oil and natural gas resources in the United States. It engages in the horizontal development of resources from the Eagle Ford Shale in South Texas. It also holds an undeveloped acreage position in the Tuscaloosa Marine Shale (TMS) in Mississippi and Louisiana. As of December 31, 2018, the company had assembled approximately 271,000 net acres in the Eagle Ford Shale; and owned approximately 34,000 net acres in the TMS. Sanchez Energy Corporation was founded in 2011 and is headquartered in Houston, Texas.

About Gran Tierra Energy

(Get Free Report)

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.

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