Kosmos Energy (NYSE:KOS – Get Free Report) and Gran Tierra Energy (NYSE:GTE – Get Free Report) are both small-cap energy companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, analyst recommendations, institutional ownership, risk, earnings, valuation and dividends.
Volatility & Risk
Kosmos Energy has a beta of 0.88, suggesting that its stock price is 12% less volatile than the S&P 500. Comparatively, Gran Tierra Energy has a beta of 0.37, suggesting that its stock price is 63% less volatile than the S&P 500.
Analyst Ratings
This is a summary of current recommendations and price targets for Kosmos Energy and Gran Tierra Energy, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Kosmos Energy | 4 | 3 | 2 | 0 | 1.78 |
| Gran Tierra Energy | 0 | 0 | 2 | 1 | 3.33 |
Kosmos Energy presently has a consensus price target of $2.53, suggesting a potential downside of 12.20%. Gran Tierra Energy has a consensus price target of $9.72, suggesting a potential downside of 17.09%. Given Kosmos Energy’s higher probable upside, analysts clearly believe Kosmos Energy is more favorable than Gran Tierra Energy.
Earnings and Valuation
This table compares Kosmos Energy and Gran Tierra Energy”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Kosmos Energy | $1.29 billion | 1.33 | -$699.79 million | ($1.19) | -2.42 |
| Gran Tierra Energy | $638.42 million | 0.65 | -$6.29 million | ($7.25) | -1.62 |
Gran Tierra Energy has lower revenue, but higher earnings than Kosmos Energy. Kosmos 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.
Profitability
This table compares Kosmos Energy and Gran Tierra Energy’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Kosmos Energy | -33.98% | -17.73% | -2.49% |
| Gran Tierra Energy | 7.17% | 11.36% | 3.28% |
Insider and Institutional Ownership
95.3% of Kosmos Energy shares are owned by institutional investors. Comparatively, 31.7% of Gran Tierra Energy shares are owned by institutional investors. 1.9% of Kosmos Energy shares are owned by insiders. Comparatively, 5.8% of Gran Tierra Energy shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Summary
Gran Tierra Energy beats Kosmos Energy on 8 of the 14 factors compared between the two stocks.
About Kosmos Energy
Kosmos Energy Ltd., together with its subsidiaries, engages in the exploration, development, and production of oil and gas along the Atlantic Margins in the United States. The company’s primary assets include production projects located in offshore Ghana, Equatorial Guinea, and the U.S. Gulf of Mexico, as well as gas projects located in offshore Mauritania and Senegal. It undertakes a proven basin exploration program in Equatorial Guinea and the U.S. Gulf of Mexico. Kosmos Energy Ltd. was founded in 2003 and is headquartered in Dallas, Texas.
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.
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