Black Stone Minerals, L.P. (BSM) & Vaalco Energy (EGY) Head to Head Analysis
Black Stone Minerals, L.P. (NYSE: BSM) and Vaalco Energy (NYSE:EGY) are both small-cap oils/energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, dividends, analyst recommendations, institutional ownership and profitabiliy.
This table compares Black Stone Minerals, L.P. and Vaalco Energy’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Black Stone Minerals, L.P.||11.88%||5.40%||3.32%|
Insider & Institutional Ownership
24.8% of Black Stone Minerals, L.P. shares are owned by institutional investors. Comparatively, 37.4% of Vaalco Energy shares are owned by institutional investors. 24.3% of Black Stone Minerals, L.P. shares are owned by company insiders. Comparatively, 2.6% of Vaalco Energy shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Valuation & Earnings
This table compares Black Stone Minerals, L.P. and Vaalco Energy’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Black Stone Minerals, L.P.||$301.03 million||10.29||$189.73 million||$0.43||37.33|
|Vaalco Energy||$70.07 million||0.77||$25.46 million||($0.26)||-3.54|
Black Stone Minerals, L.P. has higher revenue and earnings than Vaalco Energy. Vaalco Energy is trading at a lower price-to-earnings ratio than Black Stone Minerals, L.P., indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Black Stone Minerals, L.P. has a beta of 0.27, meaning that its share price is 73% less volatile than the S&P 500. Comparatively, Vaalco Energy has a beta of 0.33, meaning that its share price is 67% less volatile than the S&P 500.
Black Stone Minerals, L.P. pays an annual dividend of $1.15 per share and has a dividend yield of 7.2%. Vaalco Energy does not pay a dividend. Black Stone Minerals, L.P. pays out 267.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
This is a summary of current ratings and recommmendations for Black Stone Minerals, L.P. and Vaalco Energy, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Black Stone Minerals, L.P.||0||1||2||0||2.67|
Black Stone Minerals, L.P. currently has a consensus price target of $19.33, indicating a potential upside of 20.46%. Vaalco Energy has a consensus price target of $2.00, indicating a potential upside of 117.39%. Given Vaalco Energy’s higher possible upside, analysts plainly believe Vaalco Energy is more favorable than Black Stone Minerals, L.P..
Black Stone Minerals, L.P. beats Vaalco Energy on 11 of the 16 factors compared between the two stocks.
Black Stone Minerals, L.P. Company Profile
Black Stone Minerals, L.P. is an owner of oil and natural gas mineral interests in the United States. The Company’s principal business is maximizing the value of its existing portfolio of mineral and royalty assets through active management and expanding its asset base through acquisitions of additional mineral and royalty interests. As of December 31, 2016, it owned mineral interests in approximately 15.5 million acres, with an average 45.7% ownership interest in that acreage. As of December 31, 2016, it also owned nonparticipating royalty interests in 1.5 million acres and overriding royalty interests in 1.5 million acres. As of December 31, 2016, these non-cost-bearing interests, which it referred to collectively as its mineral and royalty interests, included ownership in 50,000 producing wells. As of December 31, 2016, its mineral and royalty interests were located in 41 states and in 64 onshore basins in the continental United States.
Vaalco Energy Company Profile
VAALCO Energy, Inc. is an independent energy company. The Company is engaged in the acquisition, exploration, development and production of crude oil and natural gas. Its segments include Gabon, Angola, Equatorial Guinea, the United States, and Corporate and other, which includes corporate and operations support. It owns producing properties and conducts exploration activities as an operator in Gabon, West Africa; conducts exploration activities as an operator in Angola, West Africa, and participates in exploration and development activities as a non-operator in Equatorial Guinea, West Africa. In the United States, it operates unconventional resource properties in North Texas and hold undeveloped leasehold acreage in Montana. It also owns minor interests in conventional production activities as a non-operator in the United States. Its Etame Marin block is located offshore the Republic of Gabon. It owns over 640-acre lease in the Hefley field (Granite Wash formation) in North Texas.
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