Contrasting GeoPark (NYSE:GPRK) and California Resources (OTCMKTS:CRCQQ)

California Resources (OTCMKTS:CRCQQ) and GeoPark (NYSE:GPRK) are both small-cap oils/energy companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.

Institutional and Insider Ownership

35.7% of California Resources shares are owned by institutional investors. Comparatively, 68.2% of GeoPark shares are owned by institutional investors. 4.1% of California Resources shares are owned by insiders. Comparatively, 1.5% of GeoPark shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and recommmendations for California Resources and GeoPark, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
California Resources	0	0	0	0	0.00
GeoPark	0	0	2	0	3.00

GeoPark has a consensus price target of $12.50, indicating a potential upside of 39.51%. Given GeoPark’s stronger consensus rating and higher possible upside, analysts plainly believe GeoPark is more favorable than California Resources.

Profitability

This table compares California Resources and GeoPark’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
California Resources	-95.33%	-4.31%	-3.78%
GeoPark	14.97%	57.93%	10.60%

Valuation and Earnings

This table compares California Resources and GeoPark”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
California Resources	$2.63 billion	0.00	-$28.00 million	N/A	N/A
GeoPark	$716.84 million	0.64	$111.07 million	$1.97	4.55

GeoPark has lower revenue, but higher earnings than California Resources.

Summary

GeoPark beats California Resources on 10 of the 12 factors compared between the two stocks.

About California Resources

California Resources Corporation operates as an oil and natural gas exploration and production company in the State of California. The company sells crude oil, natural gas, and natural gas liquids to marketers, California refineries, and other purchasers that have access to transportation and storage facilities. It holds interests in approximately 2.2 million net acres of mineral acreage. As of December 31, 2019, the company had net proved reserves of 644 million barrels of oil equivalent. It also engages in the generation and sale of electricity to the grid and utility customers. The company was founded in 2014 and is based in Los Angeles, California. On July 15, 2020, California Resources Corporation, along with its affiliates, filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of 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.