Critical Review: EOG Resources (NYSE:EOG) vs. Geopark (NYSE:GPRK)

EOG Resources (NYSE:EOG) and Geopark (NYSE:GPRK) are both energy companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, profitability, valuation, analyst recommendations, earnings, risk and institutional ownership.

Profitability

This table compares EOG Resources and Geopark’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
EOG Resources	23.01%	19.25%	11.37%
Geopark	11.74%	36.71%	8.06%

Insider & Institutional Ownership

89.9% of EOG Resources shares are held by institutional investors. Comparatively, 68.2% of Geopark shares are held by institutional investors. 0.1% of EOG Resources shares are held by insiders. Comparatively, 1.5% of Geopark shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares EOG Resources and Geopark”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
EOG Resources	$22.63 billion	3.17	$4.98 billion	$10.16	13.24
Geopark	$492.52 million	0.97	$49.67 million	$1.05	8.78

EOG Resources has higher revenue and earnings than Geopark. Geopark is trading at a lower price-to-earnings ratio than EOG Resources, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

EOG Resources has a beta of 0.25, indicating that its share price is 75% less volatile than the S&P 500. Comparatively, Geopark has a beta of 0.36, indicating that its share price is 64% less volatile than the S&P 500.

Dividends

EOG Resources pays an annual dividend of $4.08 per share and has a dividend yield of 3.0%. Geopark pays an annual dividend of $0.09 per share and has a dividend yield of 1.0%. EOG Resources pays out 40.2% of its earnings in the form of a dividend. Geopark pays out 8.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. EOG Resources has increased its dividend for 8 consecutive years and Geopark has increased its dividend for 3 consecutive years. EOG Resources is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a summary of recent ratings for EOG Resources and Geopark, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
EOG Resources	0	16	13	1	2.50
Geopark	0	2	2	0	2.50

EOG Resources presently has a consensus price target of $156.00, suggesting a potential upside of 15.99%. Geopark has a consensus price target of $11.50, suggesting a potential upside of 24.73%. Given Geopark’s higher probable upside, analysts clearly believe Geopark is more favorable than EOG Resources.

Summary

EOG Resources beats Geopark on 12 of the 17 factors compared between the two stocks.

About EOG Resources

EOG Resources, Inc., together with its subsidiaries, explores for, develops, produces, and markets crude oil, natural gas liquids, and natural gas primarily in producing basins in the United States, the Republic of Trinidad and Tobago and internationally. The company was formerly known as Enron Oil & Gas Company. EOG Resources, Inc. was incorporated in 1985 and is headquartered in Houston, Texas.

About Geopark

GeoPark Limited operates as an oil and natural gas exploration and production company primarily in Chile, Colombia, Brazil, Argentina, Ecuador, and other Latin American countries. It engages in the exploration, development, and production of oil and gas reserves. The company was formerly known as GeoPark Holdings Limited and changed its name to GeoPark Limited in July 2013. GeoPark Limited was founded in 2002 and is based in Bogotá, Colombia.