Comparing Suncor Energy (NYSE:SU) & Gran Tierra Energy (NYSE:GTE)

Suncor Energy (NYSE:SU) and Gran Tierra Energy (NYSE:GTE) are both energy companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, dividends, analyst recommendations, profitability, risk, institutional ownership and valuation.

Volatility and Risk

Suncor Energy has a beta of 0.36, indicating that its stock price is 64% less volatile than the S&P 500. Comparatively, Gran Tierra Energy has a beta of 0.37, indicating that its stock price is 63% less volatile than the S&P 500.

Insider and Institutional Ownership

67.4% of Suncor Energy shares are held by institutional investors. Comparatively, 31.7% of Gran Tierra Energy shares are held by institutional investors. 1.0% of Suncor Energy shares are held by company insiders. Comparatively, 5.8% of Gran Tierra Energy shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares Suncor Energy and Gran Tierra Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Suncor Energy	15.62%	20.05%	10.06%
Gran Tierra Energy	7.17%	11.36%	3.28%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Suncor Energy and Gran Tierra Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Suncor Energy	0	1	7	3	3.18
Gran Tierra Energy	0	0	2	1	3.33

Suncor Energy currently has a consensus target price of $79.62, indicating a potential upside of 0.09%. Gran Tierra Energy has a consensus target price of $9.72, indicating a potential downside of 14.17%. Given Suncor Energy’s higher probable upside, equities research analysts plainly believe Suncor Energy is more favorable than Gran Tierra Energy.

Earnings & Valuation

This table compares Suncor Energy and Gran Tierra Energy”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Suncor Energy	$35.29 billion	2.64	$4.24 billion	$5.43	14.65
Gran Tierra Energy	$638.42 million	0.63	-$6.29 million	($7.25)	-1.56

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

Summary

Suncor Energy beats Gran Tierra Energy on 12 of the 15 factors compared between the two stocks.

About Suncor Energy

Suncor Energy Inc. operates as an integrated energy company in Canada, the United States, and internationally. It operates through Oil Sands; Exploration and Production; and Refining and Marketing segments. The Oil Sands segment explores, develops, and produces bitumen, synthetic crude oil, and related products. This segment also engages in oil sands mining. The Exploration and Production segment is involved in offshore operations in the East Coast of Canada; and marketing and risk management of crude oil and natural gas. The Refining and Marketing segment engages in the refining of crude oil products; and distribution, marketing, transportation, and risk management of refined and petrochemical products, and other purchased products through the retail and wholesale networks. This segment is also involved in the trading of crude oil, refined products, natural gas, and power. The company was formerly known as Suncor Inc. and changed its name to Suncor Energy Inc. in April 1997. Suncor Energy Inc. was founded in 1917 and is headquartered in Calgary, Canada. Suncor Energy Inc.

About Gran Tierra Energy

Gran Tierra Energy Inc., together with its subsidiaries, engages in the exploration and production of oil and gas properties in Colombia and Ecuador. The company was founded in 2003 and is headquartered in Calgary, Canada.