Head-To-Head Analysis: Diversified Energy (NYSE:DEC) vs. Geopark (NYSE:GPRK)

Geopark (NYSE:GPRK) and Diversified Energy (NYSE:DEC) are both small-cap energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, risk and analyst recommendations.

Institutional and Insider Ownership

68.2% of Geopark shares are held by institutional investors. Comparatively, 26.5% of Diversified Energy shares are held by institutional investors. 1.5% of Geopark shares are held by insiders. Comparatively, 2.9% of Diversified Energy shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Geopark	$492.52 million	1.14	$49.67 million	$1.47	7.41
Diversified Energy	$1.83 billion	0.56	$341.11 million	$3.23	4.48

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

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Geopark and Diversified Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Geopark	0	2	1	0	2.33
Diversified Energy	0	2	7	1	2.90

Geopark currently has a consensus price target of $13.50, suggesting a potential upside of 23.85%. Diversified Energy has a consensus price target of $22.00, suggesting a potential upside of 52.19%. Given Diversified Energy’s stronger consensus rating and higher possible upside, analysts plainly believe Diversified Energy is more favorable than Geopark.

Risk and Volatility

Geopark has a beta of 0.45, meaning that its share price is 55% less volatile than the S&P 500. Comparatively, Diversified Energy has a beta of -0.28, meaning that its share price is 128% less volatile than the S&P 500.

Dividends

Geopark pays an annual dividend of $0.09 per share and has a dividend yield of 0.8%. Diversified Energy pays an annual dividend of $1.16 per share and has a dividend yield of 8.0%. Geopark pays out 6.1% of its earnings in the form of a dividend. Diversified Energy pays out 35.9% 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Geopark	16.00%	31.33%	7.66%
Diversified Energy	N/A	N/A	N/A

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.

About Diversified Energy

Diversified Energy Company PLC operates as an independent owner and operator of producing natural gas and oil wells primarily in the Appalachian Basin of the United States. The company is involved in the production, marketing, and transportation of natural gas, natural gas liquids, crude oil, and condensates. Its assets consist of natural gas wells and gathering systems located in the states of Tennessee, Kentucky, Virginia, West Virginia, Ohio, Pennsylvania, Oklahoma, Texas, and Louisiana. The company was formerly known as Diversified Gas & Oil PLC and changed its name to Diversified Energy Company PLC in May 2021. Diversified Energy Company PLC was founded in 2001 and is headquartered in Birmingham, Alabama.