Contrasting Blue Dolphin Energy (OTCMKTS:BDCO) and Par Pacific (NYSE:PARR)

Blue Dolphin Energy (OTCMKTS:BDCO) and Par Pacific (NYSE:PARR) are both small-cap oils/energy companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, profitability, analyst recommendations, dividends, risk, valuation and institutional ownership.

Insider & Institutional Ownership

92.2% of Par Pacific shares are owned by institutional investors. 87.0% of Blue Dolphin Energy shares are owned by company insiders. Comparatively, 4.4% of Par Pacific shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Risk and Volatility

Blue Dolphin Energy has a beta of 0.15, meaning that its stock price is 85% less volatile than the S&P 500. Comparatively, Par Pacific has a beta of 1.96, meaning that its stock price is 96% more volatile than the S&P 500.

Valuation and Earnings

This table compares Blue Dolphin Energy and Par Pacific’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Blue Dolphin Energy	$396.05 million	0.24	$31.01 million	$2.08	3.12
Par Pacific	$8.23 billion	0.23	$728.64 million	$11.95	2.72

Par Pacific has higher revenue and earnings than Blue Dolphin Energy. Par Pacific is trading at a lower price-to-earnings ratio than Blue Dolphin Energy, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and target prices for Blue Dolphin Energy and Par Pacific, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Blue Dolphin Energy	0	0	0	0	N/A
Par Pacific	0	2	2	0	2.50

Par Pacific has a consensus price target of $36.75, indicating a potential upside of 12.97%. Given Par Pacific’s higher probable upside, analysts plainly believe Par Pacific is more favorable than Blue Dolphin Energy.

Profitability

This table compares Blue Dolphin Energy and Par Pacific’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Blue Dolphin Energy	7.83%	91.40%	30.43%
Par Pacific	8.85%	47.63%	13.66%

Summary

Par Pacific beats Blue Dolphin Energy on 8 of the 13 factors compared between the two stocks.

About Blue Dolphin Energy

Blue Dolphin Energy Company, an independent downstream energy company, engages in the refining and marketing of petroleum products in the United States. It operates through two segments, Refinery Operations, and Tolling and Terminaling. The company produces finished products, including jet fuel, as well as various intermediate products, such as naphtha, heavy oil mud blendstock, and atmospheric gas oil; and conducts tolling and terminaling services at the Nixon facility. It also provides storage tank rentals and ancillary services. The company was incorporated in 1986 and is headquartered in Houston, Texas. Blue Dolphin Energy Company is a subsidiary of Lazarus Energy Holdings, LLC.

About Par Pacific

Par Pacific Holdings, Inc. owns and operates energy and infrastructure businesses. The company operates through Refining, Retail, and Logistics segments. The Refining segment owns and operates refineries that produce gasoline, distillate, asphalt, and other products primarily for consumption in Kapolei, Hawaii, Newcastle, Wyoming, Tacoma, Washington, and Billings, Montana. The Retail segment operates fuel retail outlets, which sell merchandise, such as soft drinks, prepared foods, and other sundries in Hawaii under the Hele, 76, and nomnom brands; and gasoline, diesel, and retail merchandise in Washington and Idaho. The Logistics segment owns and operates terminals, pipelines, single point mooring, marine vessels, storage facilities, loading and truck racks, and rail facilities to distribute ethanol, petroleum, and refined products throughout Hawaii, the United States West Coast, Washington, the Dakotas, and Wyoming; and a jet fuel storage facility and pipeline that serves Ellsworth Air Force Base in South Dakota. It also holds interest in refined products pipeline. In addition, the company owns and operates a marine terminal, a unit train-capable rail loading terminal; a truck rack, and a proprietary pipeline that serves Joint Base Lewis McChord. The company was formerly known as Par Petroleum Corporation and changed its name to Par Pacific Holdings, Inc. in October 2015. Par Pacific Holdings, Inc. was incorporated in 1984 and is headquartered in Houston, Texas.