Analyzing Geopark (NYSE:GPRK) & APA (NASDAQ:APA)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
APA	10.53%	20.98%	7.21%
Geopark	7.70%	35.65%	6.44%

Risk & Volatility

APA has a beta of 1.12, meaning that its stock price is 12% more volatile than the S&P 500. Comparatively, Geopark has a beta of 0.77, meaning that its stock price is 23% less volatile than the S&P 500.

Insider & Institutional Ownership

83.0% of APA shares are owned by institutional investors. Comparatively, 68.2% of Geopark shares are owned by institutional investors. 0.7% of APA shares are owned by insiders. Comparatively, 1.5% of Geopark shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

APA pays an annual dividend of $1.00 per share and has a dividend yield of 4.3%. Geopark pays an annual dividend of $0.12 per share and has a dividend yield of 1.5%. APA pays out 24.0% of its earnings in the form of a dividend. Geopark pays out 18.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Geopark has raised its dividend for 3 consecutive years.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
APA	$9.64 billion	0.86	$804.00 million	$4.16	5.62
Geopark	$525.94 million	0.76	$96.38 million	$0.65	12.00

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

Analyst Ratings

This is a breakdown of current ratings and target prices for APA and Geopark, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
APA	3	15	4	0	2.05
Geopark	1	0	1	0	2.00

APA currently has a consensus price target of $25.21, suggesting a potential upside of 7.83%. Given APA’s stronger consensus rating and higher probable upside, research analysts plainly believe APA is more favorable than Geopark.

Summary

APA beats Geopark on 12 of the 17 factors compared between the two stocks.

About APA

APA Corporation, an independent energy company, explores for, develops, and produces natural gas, crude oil, and natural gas liquids. It has oil and gas operations in the United States, Egypt, and North Sea. The company also has exploration and appraisal activities in Suriname, as well as holds interests in projects located in Uruguay and internationally. APA Corporation was incorporated in 1954 and is headquartered in Houston, Texas.

About Geopark

GeoPark Limited operates as an oil and natural gas exploration and production company primarily in Chile, Colombia, Brazil, Argentina, Ecuador, and other Latin American countries. It engages in the exploration, development, and production of oil and gas reserves. 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 Bogotá, Colombia.