Head to Head Analysis: Independence Contract Drilling (ICD) & Geopark (GPRK)
Independence Contract Drilling (NYSE: ICD) and Geopark (NYSE:GPRK) are both small-cap oils/energy companies, but which is the better investment? We will contrast the two companies based on the strength of their earnings, dividends, risk, valuation, profitability, analyst recommendations and institutional ownership.
Earnings & Valuation
This table compares Independence Contract Drilling and Geopark’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Independence Contract Drilling||$73.97 million||1.68||$6.78 million||($0.81)||-4.07|
|Geopark||$252.12 million||1.91||$126.42 million||($0.65)||-12.35|
Geopark has higher revenue and earnings than Independence Contract Drilling. Geopark is trading at a lower price-to-earnings ratio than Independence Contract Drilling, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and target prices for Independence Contract Drilling and Geopark, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Independence Contract Drilling||0||1||6||0||2.86|
Independence Contract Drilling presently has a consensus target price of $6.50, indicating a potential upside of 96.97%. Geopark has a consensus target price of $11.50, indicating a potential upside of 43.21%. Given Independence Contract Drilling’s higher probable upside, research analysts clearly believe Independence Contract Drilling is more favorable than Geopark.
Insider and Institutional Ownership
80.8% of Independence Contract Drilling shares are held by institutional investors. Comparatively, 14.0% of Geopark shares are held by institutional investors. 11.8% of Independence Contract Drilling shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Volatility and Risk
Independence Contract Drilling has a beta of 2.76, suggesting that its stock price is 176% more volatile than the S&P 500. Comparatively, Geopark has a beta of 0.24, suggesting that its stock price is 76% less volatile than the S&P 500.
This table compares Independence Contract Drilling and Geopark’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Independence Contract Drilling||-40.75%||-8.62%||-7.24%|
Geopark beats Independence Contract Drilling on 7 of the 13 factors compared between the two stocks.
About Independence Contract Drilling
Independence Contract Drilling, Inc. provides land-based contract drilling services for oil and natural gas producers in the United States. The company constructs, owns, and operates a fleet of ShaleDriller rigs to optimize the development of various oil and gas properties in the Permian Basin. As of December 31, 2016, it had 12 rigs. The company was founded in 2011 and is headquartered in Houston, Texas.
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.
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