Matador Resources (NYSE:MTDR) and Brigham Minerals (NYSE:MNRL) are both oils/energy companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.
Valuation and Earnings
This table compares Matador Resources and Brigham Minerals' gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
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Matador Resources | $983.67 million | 2.78 | $87.78 million | $1.20 | 19.55 |
Brigham Minerals | $101.51 million | 8.53 | $21.64 million | $0.57 | 26.79 |
Matador Resources has higher revenue and earnings than Brigham Minerals. Matador Resources is trading at a lower price-to-earnings ratio than Brigham Minerals, indicating that it is currently the more affordable of the two stocks.
Dividends
Matador Resources pays an annual dividend of $0.10 per share and has a dividend yield of 0.4%. Brigham Minerals pays an annual dividend of $1.04 per share and has a dividend yield of 6.8%. Matador Resources pays out 8.3% of its earnings in the form of a dividend. Brigham Minerals pays out 182.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Brigham Minerals has raised its dividend for 1 consecutive years. Brigham Minerals is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Analyst Recommendations
This is a breakdown of recent ratings and price targets for Matador Resources and Brigham Minerals, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
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Matador Resources | 0 | 4 | 11 | 0 | 2.73 |
Brigham Minerals | 0 | 0 | 8 | 1 | 3.11 |
Matador Resources currently has a consensus price target of $14.6250, suggesting a potential downside of 37.66%. Brigham Minerals has a consensus price target of $15.1111, suggesting a potential downside of 1.04%. Given Brigham Minerals' stronger consensus rating and higher probable upside, analysts plainly believe Brigham Minerals is more favorable than Matador Resources.
Risk & Volatility
Matador Resources has a beta of 4.8, meaning that its share price is 380% more volatile than the S&P 500. Comparatively, Brigham Minerals has a beta of 2.45, meaning that its share price is 145% more volatile than the S&P 500.
Institutional & Insider Ownership
82.7% of Matador Resources shares are held by institutional investors. Comparatively, 70.6% of Brigham Minerals shares are held by institutional investors. 7.4% of Matador Resources shares are held by company insiders. Comparatively, 3.4% of Brigham Minerals shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Profitability
This table compares Matador Resources and Brigham Minerals' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
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Matador Resources | -51.85% | 4.13% | 1.92% |
Brigham Minerals | -3.67% | 1.70% | 1.09% |
Summary
Matador Resources beats Brigham Minerals on 11 of the 18 factors compared between the two stocks.