Analyzing Geopark (NYSE:GPRK) & APA (NASDAQ:APA)

Geopark (NYSE:GPRKGet Free Report) and APA (NASDAQ:APAGet Free Report) are both energy companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, profitability, institutional ownership, risk, analyst recommendations, earnings and valuation.

Earnings and Valuation

This table compares Geopark and APA”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Geopark $525.94 million 0.76 $96.38 million $0.65 12.00
APA $9.64 billion 0.86 $804.00 million $4.16 5.62

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

Risk and Volatility

Geopark has a beta of 0.77, indicating that its share price is 23% less volatile than the S&P 500. Comparatively, APA has a beta of 1.12, indicating that its share price is 12% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings for Geopark and APA, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Geopark 1 0 1 0 2.00
APA 3 15 4 0 2.05

APA has a consensus target price of $25.21, indicating a potential upside of 7.83%. Given APA’s stronger consensus rating and higher possible upside, analysts clearly believe APA is more favorable than Geopark.

Profitability

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

Net Margins Return on Equity Return on Assets
Geopark 7.70% 35.65% 6.44%
APA 10.53% 20.98% 7.21%

Insider & Institutional Ownership

68.2% of Geopark shares are owned by institutional investors. Comparatively, 83.0% of APA shares are owned by institutional investors. 1.5% of Geopark shares are owned by company insiders. Comparatively, 0.7% of APA shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Geopark pays an annual dividend of $0.12 per share and has a dividend yield of 1.5%. APA pays an annual dividend of $1.00 per share and has a dividend yield of 4.3%. Geopark pays out 18.5% of its earnings in the form of a dividend. APA pays out 24.0% 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. Geopark has increased its dividend for 3 consecutive years.

Summary

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

About Geopark

(Get Free Report)

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.

About APA

(Get Free Report)

APA Corporation, an independent energy company, explores for, develops, and produces natural gas, crude oil, and natural gas liquids. It has oil and gas operations in the United States, Egypt, and North Sea. The company also has exploration and appraisal activities in Suriname, as well as holds interests in projects located in Uruguay and internationally. APA Corporation was incorporated in 1954 and is headquartered in Houston, Texas.

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