Reviewing California Resources (NYSE:CRC) and Blue Dolphin Energy (OTCMKTS:BDCO)

Blue Dolphin Energy (OTCMKTS:BDCO) and California Resources (NYSE:CRC) are both energy companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, analyst recommendations, valuation, risk and dividends.

Institutional & Insider Ownership

97.8% of California Resources shares are held by institutional investors. 88.3% of Blue Dolphin Energy shares are held by insiders. Comparatively, 0.5% of California Resources shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Blue Dolphin Energy and California Resources”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Blue Dolphin Energy	$317.52 million	0.14	-$8.64 million	($0.54)	-5.46
California Resources	$3.67 billion	1.67	$363.00 million	$4.08	16.88

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

Risk and Volatility

Blue Dolphin Energy has a beta of 0.38, suggesting that its stock price is 62% less volatile than the S&P 500. Comparatively, California Resources has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Blue Dolphin Energy and California Resources, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Blue Dolphin Energy	0	0	0	0	0.00
California Resources	0	4	9	2	2.87

California Resources has a consensus price target of $70.50, suggesting a potential upside of 2.38%. Given California Resources’ stronger consensus rating and higher probable upside, analysts clearly believe California Resources is more favorable than Blue Dolphin Energy.

Profitability

This table compares Blue Dolphin Energy and California Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Blue Dolphin Energy	-2.83%	-16.96%	-5.23%
California Resources	9.89%	10.23%	5.19%

Summary

California Resources beats Blue Dolphin Energy on 14 of the 15 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 California Resources

California Resources Corporation operates as an independent oil and natural gas exploration and production, and carbon management company in the United States. The company explores, produces, and markets crude oil, natural gas, and natural gas liquids for marketers, California refineries, and other purchasers that have access to transportation and storage facilities. It also engages in the generation and sale of electricity to the wholesale power market and utility sector; and developing various carbon capture and storage projects in California. The company was incorporated in 2014 and is based in Long Beach, California.