Head-To-Head Review: Magellan Petroleum Corporation (TELL) & Black Stone Minerals, L.P. (BSM)
Magellan Petroleum Corporation (NASDAQ: TELL) and Black Stone Minerals, L.P. (NYSE:BSM) are both oils/energy companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, analyst recommendations, profitability, institutional ownership and risk.
This table compares Magellan Petroleum Corporation and Black Stone Minerals, L.P.’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Magellan Petroleum Corporation||N/A||-101.56%||-85.02%|
|Black Stone Minerals, L.P.||22.71%||12.67%||7.72%|
This is a breakdown of recent ratings and target prices for Magellan Petroleum Corporation and Black Stone Minerals, L.P., as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Magellan Petroleum Corporation||0||0||0||0||N/A|
|Black Stone Minerals, L.P.||0||1||3||0||2.75|
Black Stone Minerals, L.P. has a consensus price target of $18.50, suggesting a potential upside of 7.25%. Given Black Stone Minerals, L.P.’s higher probable upside, analysts clearly believe Black Stone Minerals, L.P. is more favorable than Magellan Petroleum Corporation.
Valuation & Earnings
This table compares Magellan Petroleum Corporation and Black Stone Minerals, L.P.’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Magellan Petroleum Corporation||N/A||N/A||-$163.07 million||N/A||N/A|
|Black Stone Minerals, L.P.||$332.04 million||10.19||$267.20 million||$0.83||20.78|
Black Stone Minerals, L.P. has higher revenue and earnings than Magellan Petroleum Corporation.
Volatility and Risk
Magellan Petroleum Corporation has a beta of 1.15, indicating that its share price is 15% more volatile than the S&P 500. Comparatively, Black Stone Minerals, L.P. has a beta of 0.28, indicating that its share price is 72% less volatile than the S&P 500.
Black Stone Minerals, L.P. pays an annual dividend of $1.25 per share and has a dividend yield of 7.2%. Magellan Petroleum Corporation does not pay a dividend. Black Stone Minerals, L.P. pays out 150.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Institutional & Insider Ownership
9.0% of Magellan Petroleum Corporation shares are owned by institutional investors. Comparatively, 21.4% of Black Stone Minerals, L.P. shares are owned by institutional investors. 48.3% of Magellan Petroleum Corporation shares are owned by company insiders. Comparatively, 25.0% of Black Stone Minerals, L.P. shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Black Stone Minerals, L.P. beats Magellan Petroleum Corporation on 9 of the 12 factors compared between the two stocks.
Magellan Petroleum Corporation Company Profile
Tellurian Inc., formerly Magellan Petroleum Corporation, is an oil and gas exploration and production company. The Company focuses on the development of liquefied natural gas (LNG) projects along the United States Gulf Coast through its subsidiary, Tellurian Investments Inc. The Company owns interests in the Horse Hill-1 well and related licenses in the Weald Basin, onshore the United Kingdom, and an exploration block, NT/P82, in the Bonaparte Basin, offshore Northern Territory, Australia. The Horse Hill-1 well has identified prospects from the Portland sandstone and Kimmeridge Clay limestone formations.
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.
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