Gran Tierra Energy (NYSE:GTE) versus Houston American Energy (NYSE:HUSA) Financial Contrast

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

Risk & Volatility

Houston American Energy has a beta of 0.46, indicating that its stock price is 54% less volatile than the S&P 500. Comparatively, Gran Tierra Energy has a beta of 1.57, indicating that its stock price is 57% more volatile than the S&P 500.

Valuation & Earnings

This table compares Houston American Energy and Gran Tierra Energy”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Houston American Energy $640,348.00 24.52 -$3.21 million ($0.32) -3.75
Gran Tierra Energy $629.50 million 0.32 -$6.29 million $1.43 4.56

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

Analyst Recommendations

This is a breakdown of current ratings and target prices for Houston American Energy and Gran Tierra Energy, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Houston American Energy 0 0 0 0 0.00
Gran Tierra Energy 0 1 0 0 2.00

Gran Tierra Energy has a consensus target price of $10.00, indicating a potential upside of 53.37%. Given Gran Tierra Energy’s stronger consensus rating and higher probable upside, analysts plainly believe Gran Tierra Energy is more favorable than Houston American Energy.

Institutional & Insider Ownership

12.2% of Houston American Energy shares are owned by institutional investors. Comparatively, 31.7% of Gran Tierra Energy shares are owned by institutional investors. 15.4% of Houston American 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 company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Houston American Energy -544.15% -6.10% -5.86%
Gran Tierra Energy 7.17% 11.36% 3.28%

Summary

Gran Tierra Energy beats Houston American Energy on 10 of the 13 factors compared between the two stocks.

About Houston American Energy

(Get Free Report)

Houston American Energy Corp., an independent oil and gas company, engages in the acquisition, exploration, exploitation, development, and production of natural gas, crude oil, and condensate. Its principal properties are located primarily in the Texas Permian Basin, the South American country of Colombia, and the onshore Louisiana Gulf Coast region. The company is based 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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