Dorchester Minerals (NASDAQ:DMLP) and Bonanza Creek Energy (NYSE:BCEI) are both small-cap oils/energy companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, dividends, profitability, institutional ownership, analyst recommendations, risk and valuation.
This table compares Dorchester Minerals and Bonanza Creek Energy’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Bonanza Creek Energy||61.38%||21.73%||17.28%|
Dorchester Minerals pays an annual dividend of $2.06 per share and has a dividend yield of 11.7%. Bonanza Creek Energy does not pay a dividend. Dorchester Minerals has raised its dividend for 2 consecutive years.
Volatility and Risk
Dorchester Minerals has a beta of 1.03, indicating that its share price is 3% more volatile than the S&P 500. Comparatively, Bonanza Creek Energy has a beta of 1.56, indicating that its share price is 56% more volatile than the S&P 500.
Earnings & Valuation
This table compares Dorchester Minerals and Bonanza Creek Energy’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Dorchester Minerals||$73.28 million||8.30||$51.94 million||N/A||N/A|
|Bonanza Creek Energy||$276.66 million||1.56||$168.19 million||N/A||N/A|
Bonanza Creek Energy has higher revenue and earnings than Dorchester Minerals.
Insider & Institutional Ownership
16.7% of Dorchester Minerals shares are held by institutional investors. 9.4% of Dorchester Minerals shares are held by company insiders. Comparatively, 1.6% of Bonanza Creek Energy shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This is a breakdown of current ratings and price targets for Dorchester Minerals and Bonanza Creek Energy, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Bonanza Creek Energy||0||1||2||0||2.67|
Bonanza Creek Energy has a consensus price target of $27.00, suggesting a potential upside of 28.82%. Given Bonanza Creek Energy’s higher probable upside, analysts clearly believe Bonanza Creek Energy is more favorable than Dorchester Minerals.
Dorchester Minerals beats Bonanza Creek Energy on 9 of the 14 factors compared between the two stocks.
About Dorchester Minerals
Dorchester Minerals, L.P. engages in the acquisition, ownership, and administration of producing and nonproducing natural gas and crude oil royalty, net profits, and leasehold interests in the United States. The company's royalty properties consist of producing and nonproducing mineral, royalty, overriding royalty, net profits, and leasehold interests located in 574 counties and parishes in 25 states; and net profits interests represent net profits overriding royalty interests in various properties owned by the operating partnership. Dorchester Minerals Management LP serves as the general partner of Dorchester Minerals, L.P. The company was founded in 1982 and is based in Dallas, Texas.
About Bonanza Creek Energy
Bonanza Creek Energy, Inc., an exploration and production company, focuses on the extraction of onshore oil and related liquids-rich natural gas in the United States. The company's primary oil and liquids-weighted assets are located in the Wattenberg Field in Colorado. As of December 31, 2018, it had proved reserves of 116.8 million barrel of oil equivalent. Bonanza Creek Energy, Inc. was founded in 1999 and is headquartered in Denver, Colorado.
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