Comparing Blue Dolphin Energy (OTCMKTS:BDCO) and Northern Oil and Gas (NYSE:NOG)

Blue Dolphin Energy (OTCMKTS:BDCO) and Northern Oil and Gas (NYSE:NOG) are both energy companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, earnings, analyst recommendations, dividends, institutional ownership and risk.

Volatility & Risk

Blue Dolphin Energy has a beta of 0.51, indicating that its share price is 49% less volatile than the S&P 500. Comparatively, Northern Oil and Gas has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for Blue Dolphin Energy and Northern Oil and Gas, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Blue Dolphin Energy	0	0	0	0	0.00
Northern Oil and Gas	1	5	4	1	2.45

Northern Oil and Gas has a consensus price target of $33.00, suggesting a potential upside of 33.75%. Given Northern Oil and Gas’ stronger consensus rating and higher possible upside, analysts clearly believe Northern Oil and Gas is more favorable than Blue Dolphin Energy.

Earnings and Valuation

This table compares Blue Dolphin Energy and Northern Oil and Gas”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Blue Dolphin Energy	$317.52 million	0.07	-$8.64 million	($0.54)	-2.81
Northern Oil and Gas	$2.23 billion	1.08	$520.31 million	$1.77	13.94

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

Profitability

This table compares Blue Dolphin Energy and Northern Oil and Gas’ 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%
Northern Oil and Gas	7.61%	20.61%	8.60%

Institutional & Insider Ownership

98.8% of Northern Oil and Gas shares are owned by institutional investors. 88.3% of Blue Dolphin Energy shares are owned by insiders. Comparatively, 2.9% of Northern Oil and Gas shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Northern Oil and Gas 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 Northern Oil and Gas

Northern Oil and Gas, Inc., an independent energy company, engages in the acquisition, exploration, exploitation, development, and production of crude oil and natural gas properties in the United States. It primarily holds interests in the Williston Basin, the Appalachian Basin, and the Permian Basin in the United States. The company is based in Minnetonka, Minnesota.