Gran Tierra Energy (NYSE:GTE – Get Free Report) and Houston American Energy (NYSE:HUSA – Get Free Report) are both small-cap oils/energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, risk, earnings, dividends, valuation, profitability and analyst recommendations.
Volatility and Risk
Gran Tierra Energy has a beta of 1.57, indicating that its share price is 57% more volatile than the S&P 500. Comparatively, Houston American Energy has a beta of 0.46, indicating that its share price is 54% less volatile than the S&P 500.
Profitability
This table compares Gran Tierra Energy and Houston American 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% |
| Houston American Energy | -544.15% | -6.10% | -5.86% |
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Gran Tierra Energy | $629.50 million | 0.33 | -$6.29 million | $1.43 | 4.68 |
| Houston American Energy | $640,348.00 | 27.90 | -$3.21 million | ($0.32) | -4.27 |
Houston American Energy has lower revenue, but higher earnings 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.
Insider & Institutional Ownership
31.7% of Gran Tierra Energy shares are held by institutional investors. Comparatively, 12.2% of Houston American Energy shares are held by institutional investors. 6.5% of Gran Tierra Energy shares are held by insiders. Comparatively, 15.4% of Houston American Energy shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a summary of current ratings and recommmendations for Gran Tierra Energy and Houston American Energy, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Gran Tierra Energy | 0 | 1 | 0 | 0 | 2.00 |
| Houston American Energy | 0 | 0 | 0 | 0 | 0.00 |
Gran Tierra Energy presently has a consensus target price of $10.00, suggesting a potential upside of 49.48%. Given Gran Tierra Energy’s stronger consensus rating and higher possible upside, equities analysts clearly believe Gran Tierra Energy is more favorable than Houston American Energy.
Summary
Gran Tierra Energy beats Houston American Energy on 10 of the 13 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 Houston American Energy
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.
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