Critical Analysis: GeoPark (NYSE:GPRK) and FEC Resources (OTCMKTS:FECOF)

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

Institutional and Insider Ownership

68.2% of GeoPark shares are owned by institutional investors. Comparatively, 0.0% of FEC Resources shares are owned by institutional investors. 1.5% of GeoPark shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
GeoPark	14.28%	60.77%	10.72%
FEC Resources	N/A	388.05%	286.61%

Analyst Recommendations

This is a breakdown of current ratings for GeoPark and FEC Resources, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GeoPark	0	0	3	0	3.00
FEC Resources	0	0	0	0	N/A

GeoPark presently has a consensus target price of $13.17, indicating a potential upside of 61.36%. Given GeoPark’s higher probable upside, equities research analysts plainly believe GeoPark is more favorable than FEC Resources.

Volatility & Risk

GeoPark has a beta of 1.34, suggesting that its stock price is 34% more volatile than the S&P 500. Comparatively, FEC Resources has a beta of 1.04, suggesting that its stock price is 4% more volatile than the S&P 500.

Earnings and Valuation

This table compares GeoPark and FEC Resources’ revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GeoPark	$749.47 million	0.60	$111.07 million	$2.04	4.00
FEC Resources	N/A	N/A	-$190,000.00	N/A	N/A

GeoPark has higher revenue and earnings than FEC Resources.

Summary

GeoPark beats FEC Resources on 8 of the 10 factors compared between the two stocks.

About GeoPark

GeoPark Limited engages in the exploration, development, and production of oil and gas reserves in Chile, Colombia, Brazil, Argentina, and Ecuador. GeoPark Limited has a strategic partnership with ONGC Videsh to jointly acquire, invest in, and create value from upstream oil and gas projects across Latin America. 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 FEC Resources

FEC Resources Inc. engages in the exploration and development of oil and gas properties in the Philippines. The company, through its 6.8% interest in Forum Energy Limited, primarily owns a 70% interest in the GSEC101 offshore license covering an area of approximately 10,360 square kilometers located to the northwest of the Philippine Island of Palawan. FEC Resources Inc. is headquartered in Vancouver, Canada. FEC Resources Inc. operates as a subsidiary of PXP Energy Corporation.