Analyzing APA (NASDAQ:APA) and Biloxi Marsh Lands (OTCMKTS:BLMC)

Biloxi Marsh Lands (OTCMKTS:BLMC) and APA (NASDAQ:APA) are both energy companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, earnings, risk, institutional ownership, dividends and valuation.

Profitability

This table compares Biloxi Marsh Lands and APA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Biloxi Marsh Lands	N/A	N/A	N/A
APA	10.53%	20.98%	7.21%

Volatility & Risk

Biloxi Marsh Lands has a beta of -1.72, suggesting that its stock price is 272% less volatile than the S&P 500. Comparatively, APA has a beta of 1.12, suggesting that its stock price is 12% more volatile than the S&P 500.

Dividends

Biloxi Marsh Lands pays an annual dividend of $0.12 per share and has a dividend yield of 6.3%. APA pays an annual dividend of $1.00 per share and has a dividend yield of 4.0%. Biloxi Marsh Lands pays out -150.0% of its earnings in the form of a dividend. APA pays out 24.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Biloxi Marsh Lands is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of current ratings for Biloxi Marsh Lands and APA, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Biloxi Marsh Lands	0	0	0	0	0.00
APA	3	16	5	0	2.08

APA has a consensus price target of $25.90, indicating a potential upside of 3.23%. Given APA’s stronger consensus rating and higher possible upside, analysts clearly believe APA is more favorable than Biloxi Marsh Lands.

Earnings and Valuation

This table compares Biloxi Marsh Lands and APA”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Biloxi Marsh Lands	N/A	N/A	$100,000.00	($0.08)	-23.75
APA	$9.64 billion	0.92	$804.00 million	$4.16	6.03

APA has higher revenue and earnings than Biloxi Marsh Lands. Biloxi Marsh Lands is trading at a lower price-to-earnings ratio than APA, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

83.0% of APA shares are owned by institutional investors. 0.7% of APA shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

APA beats Biloxi Marsh Lands on 13 of the 15 factors compared between the two stocks.

About Biloxi Marsh Lands

Biloxi Marsh Lands Corporation engages in the exploration, development, and production of oil and natural gas properties. It owns approximately 90,000 acres of surface, subsurface, and minerals in St. Bernard Parish, Louisiana. The company was incorporated in 1936 and is based in Metairie, Louisiana.

About APA

APA Corporation, an independent energy company, explores for, develops, and produces natural gas, crude oil, and natural gas liquids. It has oil and gas operations in the United States, Egypt, and North Sea. The company also has exploration and appraisal activities in Suriname, as well as holds interests in projects located in Uruguay and internationally. APA Corporation was incorporated in 1954 and is headquartered in Houston, Texas.