Head-To-Head Survey: Geopark (NYSE:GPRK) versus Diversified Energy (NYSE:DEC)

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

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	14.43%	23.88%	6.09%
Diversified Energy	N/A	N/A	N/A

Dividends

Geopark pays an annual dividend of $0.09 per share and has a dividend yield of 1.0%. Diversified Energy pays an annual dividend of $1.16 per share and has a dividend yield of 9.0%. Geopark pays out 7.1% 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 increased its dividend for 3 consecutive years.

Institutional & Insider Ownership

68.2% of Geopark shares are owned by institutional investors. Comparatively, 26.5% of Diversified Energy shares are owned by institutional investors. 1.5% of Geopark shares are owned by insiders. Comparatively, 2.9% of Diversified Energy shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Geopark	$492.52 million	0.96	$49.67 million	$1.27	7.18
Diversified Energy	$1.94 billion	0.47	$341.11 million	$3.23	3.99

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.

Volatility and Risk

Geopark has a beta of 0.37, indicating that its stock price is 63% less volatile than the S&P 500. Comparatively, Diversified Energy has a beta of -0.32, indicating that its stock price is 132% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for Geopark and Diversified Energy, as provided 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 presently has a consensus price target of $13.50, suggesting a potential upside of 48.09%. Diversified Energy has a consensus price target of $22.00, suggesting a potential upside of 70.83%. Given Diversified Energy’s stronger consensus rating and higher possible upside, analysts plainly believe Diversified Energy is more favorable than Geopark.

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.