Critical Review: GeoPark (NYSE:GPRK) vs. Veren (NYSE:VRN)

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

Volatility & Risk

Veren has a beta of 2.1, meaning that its stock price is 110% more volatile than the S&P 500. Comparatively, GeoPark has a beta of 1.34, meaning that its stock price is 34% more volatile than the S&P 500.

Earnings and Valuation

This table compares Veren and GeoPark”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Veren	$2.59 billion	1.26	$422.48 million	$1.40	3.81
GeoPark	$716.84 million	0.66	$111.07 million	$1.97	4.68

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

Analyst Ratings

This is a breakdown of current recommendations for Veren and GeoPark, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Veren	0	0	2	1	3.33
GeoPark	0	0	2	0	3.00

Veren presently has a consensus target price of $12.67, indicating a potential upside of 137.43%. GeoPark has a consensus target price of $12.50, indicating a potential upside of 35.65%. Given Veren’s stronger consensus rating and higher probable upside, research analysts plainly believe Veren is more favorable than GeoPark.

Dividends

Veren pays an annual dividend of $0.33 per share and has a dividend yield of 6.2%. GeoPark pays an annual dividend of $0.58 per share and has a dividend yield of 6.3%. Veren pays out 23.6% of its earnings in the form of a dividend. GeoPark pays out 29.4% 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.

Insider & Institutional Ownership

49.4% of Veren shares are held by institutional investors. Comparatively, 68.2% of GeoPark shares are held by institutional investors. 0.3% of Veren shares are held by insiders. Comparatively, 1.5% of GeoPark shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Veren	26.93%	12.23%	6.80%
GeoPark	14.97%	57.93%	10.60%

Summary

Veren beats GeoPark on 9 of the 16 factors compared between the two stocks.

About Veren

Veren Inc. explores, develops, and produces oil and gas properties in Canada and the United States. The company focuses on crude oil, tight oil, natural gas liquids, shale gas, and natural gas reserves. Its properties are located in the provinces of Saskatchewan, Alberta, British Columbia, and Manitoba; and the states of North Dakota. The company was formerly known as Crescent Point Energy Corp. and changed its name to Veren Inc. in May 2024. Veren Inc. was incorporated in 1994 and is headquartered in Calgary, Canada.

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.