Head to Head Review: Geopark (NYSE:GPRK) and Mplx (NYSE:MPLX)

Mplx (NYSE:MPLX) and Geopark (NYSE:GPRK) are both energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, institutional ownership, profitability and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Mplx	32.91%	30.30%	10.04%
Geopark	14.43%	23.64%	5.92%

Volatility & Risk

Mplx has a beta of 0.48, indicating that its stock price is 52% less volatile than the S&P 500. Comparatively, Geopark has a beta of 0.37, indicating that its stock price is 63% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and target prices for Mplx and Geopark, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mplx	0	7	6	1	2.57
Geopark	0	2	1	0	2.33

Mplx presently has a consensus price target of $63.30, indicating a potential upside of 11.60%. Geopark has a consensus price target of $13.50, indicating a potential upside of 44.69%. Given Geopark’s higher possible upside, analysts clearly believe Geopark is more favorable than Mplx.

Insider and Institutional Ownership

24.2% of Mplx shares are held by institutional investors. Comparatively, 68.2% of Geopark shares are held by institutional investors. 1.5% of Geopark shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Mplx pays an annual dividend of $4.84 per share and has a dividend yield of 8.5%. Geopark pays an annual dividend of $0.09 per share and has a dividend yield of 1.0%. Mplx pays out 113.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Geopark pays out 7.1% of its earnings in the form of a dividend. Mplx has raised its dividend for 9 consecutive years and Geopark has raised its dividend for 3 consecutive years. Mplx is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mplx	$13.00 billion	4.42	$4.91 billion	$4.28	13.25
Geopark	$492.52 million	0.98	$49.67 million	$1.27	7.35

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

Summary

Mplx beats Geopark on 14 of the 18 factors compared between the two stocks.

About Mplx

MPLX LP is a diversified midstream energy company formed by Marathon Petroleum in 2012. It owns and operates infrastructure that gathers, processes, transports and stores energy products, connecting producers and refiners with customers and markets. The company’s assets include natural gas and natural gas liquids gathering and processing facilities, pipelines and fractionation plants, as well as crude oil and refined-product pipelines, storage terminals and inland marine transport operations. Its network serves energy-producing and refining regions across the United States.

About Geopark

GeoPark Limited is an independent energy company focused on exploring, developing and producing oil and natural gas in Latin America. Its activities span the energy-production lifecycle, from evaluating prospective areas and drilling wells to operating producing fields. Founded in 2002, the company built its business in the region and has had a significant operating presence in Colombia. Its portfolio and exploration activities have also included other Latin American countries, with assets changing over time.