Charah Solutions (NYSE:CHRA) and Diversified Royalty (OTCMKTS:BEVFF) are both small-cap oils/energy companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, valuation, earnings and profitability.
Risk and Volatility
Charah Solutions has a beta of 0.26, suggesting that its share price is 74% less volatile than the S&P 500. Comparatively, Diversified Royalty has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500.
Earnings and Valuation
This table compares Charah Solutions and Diversified Royalty's gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Charah Solutions | $554.87 million | 0.30 | $-42,060,000.00 | ($0.94) | -5.96 |
| Diversified Royalty | $22.96 million | 10.66 | $10.58 million | N/A | N/A |
Diversified Royalty has lower revenue, but higher earnings than Charah Solutions.
Profitability
This table compares Charah Solutions and Diversified Royalty's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Charah Solutions | -7.05% | -59.84% | -6.32% |
| Diversified Royalty | -18.60% | 8.03% | 4.36% |
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Charah Solutions and Diversified Royalty, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Charah Solutions | 1 | 0 | 0 | 0 | 1.00 |
| Diversified Royalty | 0 | 0 | 2 | 0 | 3.00 |
Charah Solutions presently has a consensus price target of $1.25, suggesting a potential downside of 77.68%. Diversified Royalty has a consensus price target of $2.9250, suggesting a potential upside of 45.09%. Given Diversified Royalty's stronger consensus rating and higher probable upside, analysts plainly believe Diversified Royalty is more favorable than Charah Solutions.
Insider and Institutional Ownership
33.0% of Charah Solutions shares are held by institutional investors. 3.7% of Charah Solutions shares are held by company insiders. Comparatively, 12.0% of Diversified Royalty shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Summary
Diversified Royalty beats Charah Solutions on 9 of the 13 factors compared between the two stocks.
