Financial Analysis: Coloured Ties Capital (OTCMKTS:APEOF) vs. Houston American Energy (NYSE:HUSA)

Houston American Energy (NYSE:HUSA) and Coloured Ties Capital (OTCMKTS:APEOF) are both small-cap oils/energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, dividends, risk, profitability, earnings and institutional ownership.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Houston American Energy and Coloured Ties Capital, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Houston American Energy	0	0	0	0	N/A
Coloured Ties Capital	0	0	0	0	N/A

Risk and Volatility

Houston American Energy has a beta of 0.51, meaning that its stock price is 49% less volatile than the S&P 500. Comparatively, Coloured Ties Capital has a beta of 1.88, meaning that its stock price is 88% more volatile than the S&P 500.

Profitability

This table compares Houston American Energy and Coloured Ties Capital’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Houston American Energy	-404.41%	-2.72%	-2.62%
Coloured Ties Capital	N/A	-4.84%	-4.21%

Insider & Institutional Ownership

12.2% of Houston American Energy shares are owned by institutional investors. 15.4% of Houston American Energy 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.

Earnings and Valuation

This table compares Houston American Energy and Coloured Ties Capital’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Houston American Energy	$790,000.00	22.10	-$3.21 million	($0.30)	-5.33
Coloured Ties Capital	N/A	N/A	$3.02 million	$0.03	6.67

Coloured Ties Capital has lower revenue, but higher earnings than Houston American Energy. Houston American Energy is trading at a lower price-to-earnings ratio than Coloured Ties Capital, indicating that it is currently the more affordable of the two stocks.

About Houston American Energy

Houston American Energy Corp., an independent oil and gas company, engages in the exploration, development, and production of natural gas, crude oil, and condensate in the United States. Its principal properties are located primarily in the Texas Permian Basin, the South American country of Colombia, and the onshore Texas and Louisiana Gulf Coast region. The company was founded in 2001 and is based in Houston, Texas.

About Coloured Ties Capital

Coloured Ties Capital Inc. is a venture capital firm specializing in early stage investments. The firm seeks to invest in equity, debt, and convertible securities in all sectors of the junior capital markets, which may be held for both long-term capital appreciation and shorter-term gains. It invests in companies in the junior resources and breakthrough and disruptive technologies. The firm engages in the acquisition, exploration, and development of mineral properties. It holds 100% interest in the Cadillac-Pontiac Lithium belt comprises 108 claims located southwest of Val-d'Or, Canada. The company was formerly known as GrowMax Resources Corp. and changed its name to Coloured Ties Capital Inc. in November 2021. Coloured Ties Capital Inc. is headquartered in Vancouver, Canada.