Gran Tierra Energy (NYSE:GTE) vs. Canadian Natural Resources (NYSE:CNQ) Head-To-Head Review
by Renee Jackson · The Cerbat GemGran Tierra Energy (NYSE:GTE – Get Free Report) and Canadian Natural Resources (NYSE:CNQ – Get Free Report) are both energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, risk, dividends, valuation, analyst recommendations, earnings and institutional ownership.
Profitability
This table compares Gran Tierra Energy and Canadian Natural Resources’ 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% |
| Canadian Natural Resources | 22.78% | 23.91% | 11.45% |
Risk & Volatility
Gran Tierra Energy has a beta of 0.19, indicating that its share price is 81% less volatile than the S&P 500. Comparatively, Canadian Natural Resources has a beta of 0.47, indicating that its share price is 53% less volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings and price targets for Gran Tierra Energy and Canadian Natural Resources, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Gran Tierra Energy | 0 | 0 | 2 | 1 | 3.33 |
| Canadian Natural Resources | 0 | 5 | 7 | 0 | 2.58 |
Gran Tierra Energy currently has a consensus target price of $9.72, indicating a potential downside of 10.04%. Canadian Natural Resources has a consensus target price of $57.00, indicating a potential upside of 11.88%. Given Canadian Natural Resources’ higher probable upside, analysts plainly believe Canadian Natural Resources is more favorable than Gran Tierra Energy.
Earnings & Valuation
This table compares Gran Tierra Energy and Canadian Natural Resources”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Gran Tierra Energy | $638.42 million | 0.60 | -$6.29 million | ($7.25) | -1.49 |
| Canadian Natural Resources | $51.40 billion | 2.04 | $7.74 billion | $4.05 | 12.58 |
Canadian Natural Resources has higher revenue and earnings than Gran Tierra Energy. Gran Tierra Energy is trading at a lower price-to-earnings ratio than Canadian Natural Resources, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
31.7% of Gran Tierra Energy shares are owned by institutional investors. Comparatively, 74.0% of Canadian Natural Resources shares are owned by institutional investors. 5.8% of Gran Tierra Energy shares are owned by insiders. Comparatively, 5.0% of Canadian Natural Resources shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Summary
Canadian Natural Resources beats Gran Tierra Energy on 12 of the 15 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 Canadian Natural Resources
Canadian Natural Resources Limited acquires, explores for, develops, produces, markets, and sells crude oil, natural gas, and natural gas liquids (NGLs). The company offers light and medium crude oil, primary heavy crude oil, Pelican Lake heavy crude oil, bitumen (thermal oil), and synthetic crude oil (SCO). The company’s midstream assets include two pipeline systems; and a 50% working interest in an 84-megawatt cogeneration plant at Primrose. It operates primarily in Western Canada; the United Kingdom portion of the North Sea; and Offshore Africa. The company was formerly known as AEX Minerals Corporation and changed its name to Canadian Natural Resources Limited in December 1975. Canadian Natural Resources Limited was incorporated in 1973 and is headquartered in Calgary, Canada.