Geopark (NYSE: GPRK) and North Atlantic Drilling (NYSE:NADL) are both small-cap oils/energy companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, profitability, earnings, institutional ownership, valuation and dividends.

Volatility & Risk

Geopark has a beta of 0.24, meaning that its stock price is 76% less volatile than the S&P 500. Comparatively, North Atlantic Drilling has a beta of 2.98, meaning that its stock price is 198% more volatile than the S&P 500.

Insider and Institutional Ownership

14.1% of Geopark shares are held by institutional investors. Comparatively, 4.4% of North Atlantic Drilling shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Geopark and North Atlantic Drilling’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Geopark $252.12 million 1.82 $126.42 million ($0.65) -11.77
North Atlantic Drilling $446.00 million 0.08 $253.00 million ($7.96) -0.17

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

Profitability

This table compares Geopark and North Atlantic Drilling’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Geopark -15.19% -21.79% -5.07%
North Atlantic Drilling -54.37% -52.01% -6.57%

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Geopark and North Atlantic Drilling, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Geopark 0 0 5 0 3.00
North Atlantic Drilling 1 0 0 0 1.00

Geopark currently has a consensus price target of $11.50, suggesting a potential upside of 50.33%. North Atlantic Drilling has a consensus price target of $2.00, suggesting a potential upside of 43.88%. Given Geopark’s stronger consensus rating and higher probable upside, research analysts plainly believe Geopark is more favorable than North Atlantic Drilling.

Summary

Geopark beats North Atlantic Drilling on 9 of the 12 factors compared between the two stocks.

About Geopark

GeoPark Limited engages in the exploration, development, and production of oil and gas reserves in Chile, Colombia, Brazil, Peru, and Argentina. As of December 31, 2016, the company had working and/or economic interests in 26 hydrocarbons blocks, as well as shallow-offshore concession in Brazil that includes the Manati Field. It had net proved reserves of 73.6 million barrels of oil equivalent. 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 Santiago, Chile.

About North Atlantic Drilling

North Atlantic Drilling Ltd. operates as an offshore drilling contractor in the North Atlantic region. The company provides harsh environment offshore drilling services to the oil and gas industry primarily in Norway, the United Kingdom, and the Russian Federation. As of December 31, 2016, it owned seven offshore drilling rigs, including three semi-submersibles, one ultra-deep water drillship, and three jack-up rigs. The company was founded in 2011 and is headquartered in Hamilton, Bermuda. North Atlantic Drilling Ltd. is a subsidiary of Seadrill Limited.

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