Breitburn Energy Partners (NASDAQ: BBEP) and Geopark (NYSE:GPRK) are both small-cap basic materials companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, earnings, analyst recommendations, risk, profitability, valuation and institutional ownership.

Dividends

Breitburn Energy Partners pays an annual dividend of $0.25 per share and has a dividend yield of 819.7%. Geopark does not pay a dividend. Breitburn Energy Partners pays out -8.8% of its earnings in the form of a dividend.

Profitability

This table compares Breitburn Energy Partners and Geopark’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Breitburn Energy Partners -46.62% N/A -6.63%
Geopark -15.19% -21.79% -5.07%

Risk & Volatility

Breitburn Energy Partners has a beta of -1.4, meaning that its share price is 240% less volatile than the S&P 500. Comparatively, Geopark has a beta of 0.31, meaning that its share price is 69% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Breitburn Energy Partners and Geopark, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Breitburn Energy Partners 0 0 0 0 N/A
Geopark 0 0 6 0 3.00

Geopark has a consensus target price of $11.50, suggesting a potential upside of 21.82%. Given Geopark’s higher possible upside, analysts clearly believe Geopark is more favorable than Breitburn Energy Partners.

Valuation & Earnings

This table compares Breitburn Energy Partners and Geopark’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Breitburn Energy Partners N/A N/A N/A ($2.83) -0.01
Geopark $192.67 million 2.94 -$49.09 million ($0.65) -14.52

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

Institutional and Insider Ownership

14.9% of Geopark shares are held by institutional investors. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Geopark beats Breitburn Energy Partners on 8 of the 11 factors compared between the two stocks.

Breitburn Energy Partners Company Profile

Breitburn Energy Partners LP is an independent oil and gas partnership focused on the acquisition, exploitation and development of oil, natural gas liquid (NGL) and natural gas properties in the United States. The Company’s assets consist primarily of producing and non-producing oil, NGL and natural gas reserves located in approximately seven producing areas, which include Midwest (Michigan, Indiana and Kentucky); Ark-La-Tex (Arkansas, Louisiana and East Texas); Permian Basin in Texas and New Mexico; Mid-Continent (Oklahoma, Kansas and the Texas Panhandle); Rockies (Wyoming and Colorado); Southeast (Florida and Alabama), and California. Its midstream assets include transmission and gathering pipelines, gas processing plants, NGL recovery plants, a controlling interest in a salt water disposal company and the 120-mile Transpetco Pipeline. Its total estimated proved reserves are approximately 239.3 million barrels of oil equivalent (MMBoe).

Geopark Company Profile

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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