Critical Contrast: Hess Midstream Partners (NYSE:HESM) & Gran Tierra Energy (NYSE:GTE)

Gran Tierra Energy (NYSE:GTE) and Hess Midstream Partners (NYSE:HESM) are both energy companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, institutional ownership, risk, valuation, profitability and dividends.

Risk & Volatility

Gran Tierra Energy has a beta of 0.25, suggesting that its stock price is 75% less volatile than the S&P 500. Comparatively, Hess Midstream Partners has a beta of 0.68, suggesting that its stock price is 32% less volatile than the S&P 500.

Profitability

This table compares Gran Tierra Energy and Hess Midstream Partners’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gran Tierra Energy	7.17%	11.36%	3.28%
Hess Midstream Partners	23.49%	93.86%	8.78%

Insider and Institutional Ownership

31.7% of Gran Tierra Energy shares are held by institutional investors. Comparatively, 99.0% of Hess Midstream Partners shares are held by institutional investors. 5.8% of Gran Tierra Energy shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Gran Tierra Energy and Hess Midstream Partners”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gran Tierra Energy	$657.47 million	0.50	-$6.29 million	($7.88)	-1.18
Hess Midstream Partners	$1.62 billion	3.93	$352.90 million	$2.92	10.59

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

Analyst Ratings

This is a summary of recent recommendations and price targets for Gran Tierra Energy and Hess Midstream Partners, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gran Tierra Energy	0	0	2	1	3.33
Hess Midstream Partners	3	5	1	0	1.78

Gran Tierra Energy presently has a consensus target price of $9.72, indicating a potential upside of 4.63%. Hess Midstream Partners has a consensus target price of $33.25, indicating a potential upside of 7.54%. Given Hess Midstream Partners’ higher possible upside, analysts clearly believe Hess Midstream Partners is more favorable than Gran Tierra Energy.

Summary

Hess Midstream Partners beats Gran Tierra Energy on 11 of the 15 factors compared between the two stocks.

About Gran Tierra Energy

Gran Tierra Energy Inc. is an independent energy company focused on exploring for, developing and producing oil and natural gas. Its operations include producing fields as well as exploration prospects, with crude oil as a key product. Founded in 2005 and based in Calgary, Alberta, the company has built a portfolio spanning Colombia, Ecuador and Canada. Its activities include operating and developing oil and gas assets and pursuing exploration opportunities in these markets.

About Hess Midstream Partners

Hess Midstream LP owns and operates midstream infrastructure that gathers, processes, transports and stores crude oil, natural gas and natural gas liquids produced in the Bakken and Three Forks formations. Its services support oil and gas production in the Williston Basin of North Dakota. The company’s assets include crude oil and natural gas gathering systems, natural gas compression and processing facilities, and infrastructure for transporting and handling natural gas liquids. It also provides water gathering and disposal services used in oil and gas operations.