Cimarex Energy (XEC) vs. San Juan Basin Royalty Trust (SJT) Financial Contrast
Cimarex Energy (NYSE: XEC) and San Juan Basin Royalty Trust (NYSE:SJT) are both oils/energy companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, earnings, dividends, institutional ownership, risk and profitability.
Risk and Volatility
Cimarex Energy has a beta of 1.35, suggesting that its stock price is 35% more volatile than the S&P 500. Comparatively, San Juan Basin Royalty Trust has a beta of -0.41, suggesting that its stock price is 141% less volatile than the S&P 500.
Earnings & Valuation
This table compares Cimarex Energy and San Juan Basin Royalty Trust’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Cimarex Energy||$1.62 billion||6.66||$1.02 billion||$2.66||43.40|
|San Juan Basin Royalty Trust||$28.01 million||12.63||$25.63 million||$0.55||13.80|
Cimarex Energy has higher revenue and earnings than San Juan Basin Royalty Trust. San Juan Basin Royalty Trust is trading at a lower price-to-earnings ratio than Cimarex Energy, indicating that it is currently the more affordable of the two stocks.
Cimarex Energy pays an annual dividend of $0.32 per share and has a dividend yield of 0.3%. San Juan Basin Royalty Trust pays an annual dividend of $2.60 per share and has a dividend yield of 34.3%. Cimarex Energy pays out 12.0% of its earnings in the form of a dividend. San Juan Basin Royalty Trust pays out 472.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. San Juan Basin Royalty Trust has raised its dividend for 3 consecutive years. San Juan Basin Royalty Trust is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This is a breakdown of recent ratings for Cimarex Energy and San Juan Basin Royalty Trust, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|San Juan Basin Royalty Trust||0||0||0||0||N/A|
Cimarex Energy presently has a consensus target price of $136.29, indicating a potential upside of 18.05%. Given Cimarex Energy’s higher possible upside, research analysts clearly believe Cimarex Energy is more favorable than San Juan Basin Royalty Trust.
This table compares Cimarex Energy and San Juan Basin Royalty Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|San Juan Basin Royalty Trust||92.24%||337.99%||232.21%|
Institutional & Insider Ownership
90.0% of Cimarex Energy shares are owned by institutional investors. Comparatively, 27.1% of San Juan Basin Royalty Trust shares are owned by institutional investors. 1.7% of Cimarex Energy shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Cimarex Energy beats San Juan Basin Royalty Trust on 10 of the 16 factors compared between the two stocks.
About Cimarex Energy
Cimarex Energy Co. is an independent oil and gas exploration and production company. The Company operates in exploration and production (E&P) segment. Its operations are located in Oklahoma, Texas and New Mexico. Its E&P activities take place primarily in two areas: the Permian Basin and the Mid-Continent region. Its Permian Basin region encompasses west Texas and southeast New Mexico. Its Mid-Continent region consists of Oklahoma and the Texas Panhandle. As of fiscal year ended December 31, 2016 (fiscal 2016), its activities in the Mid-Continent were focused in the Woodford shale and the Meramec horizon, both in Oklahoma. During fiscal 2016, production from the Mid-Continent averaged 457 millions of cubic feet equivalent (MMcfe) per day, or 47% of total company production. All of the Company’s oil and gas assets are located in the United States. As of December 31, 2016, 63% of its total proved reserves were located in the Mid-Continent region and 37% were in the Permian Basin.
About San Juan Basin Royalty Trust
San Juan Basin Royalty Trust is an express trust. The principal asset of the Trust is Royalty. Its Royalty is carved from working, royalty and other oil and natural gas interests owned by Southland Royalty Company, the predecessor to Burlington Resources Oil & Gas Company LP (Burlington), in properties located in the San Juan Basin of northwestern New Mexico (Subject Interests). The Trustee of the Trust is Compass Bank. The function of the Trustee is to collect the net proceeds attributable to the Royalty, to pay all expenses and charges of the Trust and distribute the remaining available income to the Unit Holders. The Trust does not operate the Subject Interests and is not empowered to carry on any business activity. It is a widely held fixed investment trust (WHFIT) and is classified as a non-mortgage widely held fixed investment trust (NMWHFIT) for federal income tax purposes. As of December 31, 2016, 99% of the Trust’s estimated proved reserves consisted of natural gas reserves.
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