Critical Analysis: Veren (NYSE:VRN) & Gulfport Energy (OTCMKTS:GPORQ)

Gulfport Energy (OTCMKTS:GPORQ) and Veren (NYSE:VRN) are both oils/energy companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, analyst recommendations, risk, dividends, earnings, institutional ownership and profitability.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gulfport Energy	0	0	0	0	0.00
Veren	0	0	2	1	3.33

Veren has a consensus price target of $12.67, indicating a potential upside of 140.35%. Given Veren’s stronger consensus rating and higher probable upside, analysts clearly believe Veren is more favorable than Gulfport Energy.

Risk and Volatility

Gulfport Energy has a beta of 5.5, indicating that its stock price is 450% more volatile than the S&P 500. Comparatively, Veren has a beta of 2.16, indicating that its stock price is 116% more volatile than the S&P 500.

Insider and Institutional Ownership

0.0% of Gulfport Energy shares are owned by institutional investors. Comparatively, 49.4% of Veren shares are owned by institutional investors. 0.5% of Gulfport Energy shares are owned by company insiders. Comparatively, 0.3% of Veren shares are owned 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.

Profitability

This table compares Gulfport Energy and Veren’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%
Veren	26.93%	12.23%	6.80%

Valuation & Earnings

This table compares Gulfport Energy and Veren”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gulfport Energy	$866.54 million	34.17	-$1.63 billion	($6.86)	-26.85
Veren	$4.30 billion	0.75	$422.48 million	$1.40	3.76

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

Summary

Veren beats Gulfport Energy on 12 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 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.