Birchcliff Energy (OTCMKTS:BIREF) and Black Stone Minerals (NYSE:BSM) are both oils/energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, earnings, risk, profitability and valuation.
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Birchcliff Energy and Black Stone Minerals, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Birchcliff Energy | 0 | 2 | 8 | 0 | 2.80 |
| Black Stone Minerals | 0 | 1 | 1 | 1 | 3.00 |
Birchcliff Energy presently has a consensus target price of $3.95, indicating a potential upside of 71.96%. Black Stone Minerals has a consensus target price of $10.50, indicating a potential upside of 6.71%. Given Birchcliff Energy's higher possible upside, equities analysts plainly believe Birchcliff Energy is more favorable than Black Stone Minerals.
Profitability
This table compares Birchcliff Energy and Black Stone Minerals' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Birchcliff Energy | -22.14% | -2.44% | -1.35% |
| Black Stone Minerals | 31.42% | 16.85% | 9.18% |
Institutional & Insider Ownership
19.1% of Black Stone Minerals shares are held by institutional investors. 24.6% of Black Stone Minerals shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares Birchcliff Energy and Black Stone Minerals' top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Birchcliff Energy | $462.38 million | 1.32 | $-41,740,000.00 | N/A | N/A |
| Black Stone Minerals | $487.82 million | 4.19 | $214.37 million | $1.16 | 8.50 |
Black Stone Minerals has higher revenue and earnings than Birchcliff Energy.
Dividends
Birchcliff Energy pays an annual dividend of $0.02 per share and has a dividend yield of 0.9%. Black Stone Minerals pays an annual dividend of $0.70 per share and has a dividend yield of 7.1%. Black Stone Minerals pays out 60.3% of its earnings in the form of a dividend. Black Stone Minerals has increased its dividend for 1 consecutive years. Black Stone Minerals is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
Black Stone Minerals beats Birchcliff Energy on 13 of the 16 factors compared between the two stocks.
