Pacific Coast Oil Trust (OTCMKTS:ROYTL) and GeoPark (NYSE:GPRK) Critical Review

GeoPark (NYSE:GPRK) and Pacific Coast Oil Trust (OTCMKTS:ROYTL) are both small-cap oils/energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, earnings, analyst recommendations, risk, institutional ownership and dividends.

Profitability

This table compares GeoPark and Pacific Coast Oil Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GeoPark	14.97%	57.93%	10.60%
Pacific Coast Oil Trust	N/A	N/A	N/A

Analyst Ratings

This is a summary of current recommendations and price targets for GeoPark and Pacific Coast Oil Trust, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GeoPark	0	0	2	0	3.00
Pacific Coast Oil Trust	0	0	0	0	0.00

GeoPark currently has a consensus target price of $12.50, indicating a potential upside of 23.27%. Given GeoPark’s stronger consensus rating and higher probable upside, research analysts clearly believe GeoPark is more favorable than Pacific Coast Oil Trust.

Institutional and Insider Ownership

68.2% of GeoPark 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, large money managers and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares GeoPark and Pacific Coast Oil Trust”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GeoPark	$756.60 million	0.69	$111.07 million	$1.97	5.15
Pacific Coast Oil Trust	N/A	N/A	N/A	N/A	N/A

GeoPark has higher revenue and earnings than Pacific Coast Oil Trust.

Volatility & Risk

GeoPark has a beta of 1.37, indicating that its share price is 37% more volatile than the S&P 500. Comparatively, Pacific Coast Oil Trust has a beta of 0.83, indicating that its share price is 17% less volatile than the S&P 500.

Summary

GeoPark beats Pacific Coast Oil Trust on 10 of the 10 factors compared between the two stocks.

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 Pacific Coast Oil Trust

Pacific Coast Oil Trust acquires and holds net profits and royalty interests in various oil and natural gas properties located in California. Its properties include Orcutt properties located in the Santa Maria Basin; and West Pico, East Coyote, and Sawtelle properties located in the Los Angeles Basin of California. Pacific Coast Oil Trust was founded in 2012 and is based in Houston, Texas.