Critical Review: Galp Energia, SGPS (OTCMKTS:GLPEY) versus Greenfire Resources (NYSE:GFR)

Galp Energia, SGPS (OTCMKTS:GLPEY) and Greenfire Resources (NYSE:GFR) are both energy companies, but which is the better business? We will compare the two companies based on the strength of their risk, analyst recommendations, institutional ownership, earnings, valuation, dividends and profitability.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Galp Energia, SGPS and Greenfire Resources, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Galp Energia, SGPS	0	0	0	2	4.00
Greenfire Resources	0	0	1	0	3.00

Greenfire Resources has a consensus target price of $10.50, indicating a potential upside of 130.21%. Given Greenfire Resources’ higher probable upside, analysts plainly believe Greenfire Resources is more favorable than Galp Energia, SGPS.

Insider and Institutional Ownership

88.9% of Greenfire Resources shares are held by institutional investors. 20.0% of Greenfire Resources shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Galp Energia, SGPS and Greenfire Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Galp Energia, SGPS	6.17%	24.38%	8.14%
Greenfire Resources	5.02%	5.40%	3.13%

Risk and Volatility

Galp Energia, SGPS has a beta of 0.28, meaning that its stock price is 72% less volatile than the S&P 500. Comparatively, Greenfire Resources has a beta of 0.31, meaning that its stock price is 69% less volatile than the S&P 500.

Valuation & Earnings

This table compares Galp Energia, SGPS and Greenfire Resources”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Galp Energia, SGPS	$22.04 billion	0.50	$1.34 billion	$0.94	8.40
Greenfire Resources	$822.97 million	0.38	-$100.50 million	$1.18	3.87

Galp Energia, SGPS has higher revenue and earnings than Greenfire Resources. Greenfire Resources is trading at a lower price-to-earnings ratio than Galp Energia, SGPS, indicating that it is currently the more affordable of the two stocks.

Summary

Galp Energia, SGPS beats Greenfire Resources on 8 of the 15 factors compared between the two stocks.

About Galp Energia, SGPS

Galp Energia, SGPS, S.A. operates as an integrated energy operator in Portugal and internationally. The company operates through four segments: Upstream, Industrial & Midstream, Commercial, and Renewables and New Business. The Upstream segment engages in the exploration, development, and production of hydrocarbons primarily in Brazil, Mozambique, Namibia, and Angola. The Industrial & Midstream segment owns refineries in Portugal, as well as is involved in activities related to energy management of oil products, gas, and electricity. This segment provides storage and transportation infrastructure for oil and gas products, as well as engages in the sale of electricity to the grid in Portugal and Spain. The Commercial segment is involved in the areas of retail to final business-to-business and business to consumer customers of oil, gas, and electricity. The Renewables and New Business segment is involved in the development of solar and wind power generation projects in Portugal and Spain. In addition, it produces lithium-ion batteries, hydrogen, and biofuels; and operates service stations. Further, the company engages in the reinsurance business. The company was formerly known as Galp Petróleos e Gás de Portugal, SGPS, S.A. and changed its name to Galp Energia, SGPS, S.A. in September 2000. Galp Energia, SGPS, S.A. was incorporated in 1999 and is headquartered in Lisbon, Portugal.

About Greenfire Resources

Greenfire Resources Ltd., together with its subsidiaries, engages in the development, exploration, and operation of oil and gas properties in the Athabasca oil sands region of Alberta. The company operates the Tier-1 oil sands assets located in Western Canada. It utilizes steam-assisted gravity drainage (SAGD) extraction technology, a situ thermal oil recovery process to recover diluted and non- diluted bitumen. The company is headquartered in Calgary, Canada.