Critical Analysis: Coterra Energy (NYSE:CTRA) & Gulfport Energy (OTCMKTS:GPORQ)

Gulfport Energy (OTCMKTS:GPORQ) and Coterra Energy (NYSE:CTRA) are both large-cap energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their risk, institutional ownership, earnings, dividends, analyst recommendations, valuation and profitability.

Risk & Volatility

Gulfport Energy has a beta of 5.5, indicating that its stock price is 450% more volatile than the S&P 500. Comparatively, Coterra Energy has a beta of 0.26, indicating that its stock price is 74% less volatile than the S&P 500.

Profitability

This table compares Gulfport Energy and Coterra Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gulfport Energy	-144.45%	-93.72%	-3.48%
Coterra Energy	21.91%	9.38%	5.95%

Insider and Institutional Ownership

0.0% of Gulfport Energy shares are held by institutional investors. Comparatively, 87.9% of Coterra Energy shares are held by institutional investors. 0.5% of Gulfport Energy shares are held by company insiders. Comparatively, 1.7% of Coterra Energy shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Gulfport Energy and Coterra Energy”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gulfport Energy	$866.54 million	35.08	-$1.63 billion	($6.86)	-27.56
Coterra Energy	$5.46 billion	4.06	$1.63 billion	$1.51	19.22

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

Analyst Ratings

This is a summary of current ratings and price targets for Gulfport Energy and Coterra Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gulfport Energy	0	0	0	0	0.00
Coterra Energy	0	3	17	1	2.90

Coterra Energy has a consensus price target of $34.35, indicating a potential upside of 18.37%. Given Coterra Energy’s stronger consensus rating and higher probable upside, analysts plainly believe Coterra Energy is more favorable than Gulfport Energy.

Summary

Coterra Energy beats Gulfport Energy on 13 of the 15 factors compared between the two stocks.

About Gulfport Energy

Gulfport Energy Corporation engages in the exploration, development, acquisition, and production of natural gas, crude oil, and natural gas liquids (NGL) in the United States. Its principal properties include Utica Shale covering an area of approximately 205,000 net reservoir acres primarily located in Eastern Ohio; and SCOOP covering an area of approximately 76,000 net reservoir acres primarily located in Oklahoma. As of December 31, 2020, it had 2.6 trillion cubic feet of natural gas equivalent of proved reserves; proved undeveloped reserves of 7 MMbbl of oil; and 923 Bcf of natural gas and 16 MMbbl of NGL. The company was incorporated in 1997 and is headquartered in Oklahoma City, Oklahoma. On November 13, 2020, Gulfport Energy 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 Coterra Energy

Coterra Energy Inc., an independent oil and gas company, engages in the development, exploration, and production of oil, natural gas, and natural gas liquids in the United States. The company’s properties include the Marcellus Shale with approximately 186,000 net acres in the dry gas window of the play located in Susquehanna County, Pennsylvania; Permian Basin properties with approximately 296,000 net acres located in west Texas and southeast New Mexico; and Anadarko Basin properties with approximately 182,000 net acres located in Oklahoma. It also operates natural gas and saltwater gathering and disposal systems in Texas. The company sells its natural gas to industrial customers, local distribution companies, oil and gas marketers, major energy companies, pipeline companies, and power generation facilities. Coterra Energy Inc. was incorporated in 1989 and is headquartered in Houston, Texas.