Reviewing Transglobe Energy (TGA) and Galp Energia Sgps (GLPEY)

Transglobe Energy (NASDAQ: TGA) and Galp Energia Sgps (OTCMKTS:GLPEY) are both oils/energy companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, dividends and analyst recommendations.

Analyst Recommendations

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This is a summary of current recommendations for Transglobe Energy and Galp Energia Sgps, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Transglobe Energy 0 0 0 0 N/A
Galp Energia Sgps 0 2 0 0 2.00

Institutional and Insider Ownership

18.8% of Transglobe Energy shares are owned by institutional investors. Comparatively, 0.1% of Galp Energia Sgps shares are owned by institutional investors. 4.0% of Transglobe Energy shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Transglobe Energy and Galp Energia Sgps’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Transglobe Energy $252.59 million 0.37 -$78.73 million ($0.28) -4.61
Galp Energia Sgps $16.48 billion 0.90 $198.18 million $0.12 80.25

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

Profitability

This table compares Transglobe Energy and Galp Energia Sgps’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Transglobe Energy -43.56% 1.43% 0.93%
Galp Energia Sgps 3.17% 7.73% 4.00%

Dividends

Galp Energia Sgps pays an annual dividend of $0.18 per share and has a dividend yield of 1.9%. Transglobe Energy does not pay a dividend. Galp Energia Sgps pays out 150.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Volatility & Risk

Transglobe Energy has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500. Comparatively, Galp Energia Sgps has a beta of 0.55, suggesting that its stock price is 45% less volatile than the S&P 500.

Summary

Galp Energia Sgps beats Transglobe Energy on 9 of the 13 factors compared between the two stocks.

About Transglobe Energy

TransGlobe Energy Corporation, through its subsidiaries, explores for, develops, and produces crude oil and natural gas liquids in Egypt and Canada. It holds working interests in West Gharib, West Bakr, North West Gharib, South West Gharib, South East Gharib, South Ghazalat, South Alamein, and North West Sitra production sharing contracts. TransGlobe Energy Corporation was founded in 1968 and is headquartered in Calgary, Canada.

About Galp Energia Sgps

Galp Energia, SGPS, S.A. operates as oil and natural gas integrated operator worldwide. Its Exploration & Production segment explores, develops, and produces hydrocarbons in approximately 53 projects with proved, probable, and possible reserves of 673 million barrels of oil equivalent. The company’s Refining & Marketing of Oil Products segment engages in the refining, retail, and wholesale marketing of oil products; operation of oil products storage and transportation infrastructure; and operation of 1,436 service stations in Portugal, Spain, and Africa. Its Gas & Power segment procures, supplies, distributes, and storages natural gas; generates and supplies electric, thermal, and wind power; and holds interests in various cogeneration plants with a total installed capacity of 173 megawatts, and wind farms. The company also engages in the management of equity participations; research, production, processing, logistics, and marketing of grain, vegetable oil, biofuel products, and their derivatives; technical management of ships, crews, and supply; development and operation of maritime terminals; retail sale of food products and domestic utensils, as well as presents and other articles, such as newspapers, magazines, records, videos, toys, drinks, tobacco, cosmetics and hygiene, travel, and vehicle accessory items; study, projection, installation, production, and marketing of biofuels; treatment and recovery of waste; purchase and sale of equipment; and design and construction of underground liquefied petroleum gas storage facilities. In addition, it offers business management and consultancy, financing, open investment fund, reinsurance, and maritime transport services; and operates service stations, workshops, restaurants, and hotels. The company was formerly known as Galp – Petróleos e Gás de Portugal, SGPS, S.A. and changed its name to Galp Energia, SGPS, S.A. in September 2000. Galp Energia, SGPS, S.A. was founded in 1999 and is headquartered in Lisbon, Portugal.

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