Dorchester Minerals, L.P. (DMLP) versus Its Competitors Critical Review
Dorchester Minerals, L.P. (NASDAQ: DMLP) is one of 104 public companies in the “Integrated Mining” industry, but how does it contrast to its peers? We will compare Dorchester Minerals, L.P. to similar businesses based on the strength of its dividends, risk, valuation, institutional ownership, earnings, profitability and analyst recommendations.
Dorchester Minerals, L.P. pays an annual dividend of $1.29 per share and has a dividend yield of 8.8%. Dorchester Minerals, L.P. pays out 135.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Integrated Mining” companies pay a dividend yield of 3.0% and pay out 41.6% of their earnings in the form of a dividend.
Risk & Volatility
Dorchester Minerals, L.P. has a beta of 0.8, meaning that its share price is 20% less volatile than the S&P 500. Comparatively, Dorchester Minerals, L.P.’s peers have a beta of 0.81, meaning that their average share price is 20% less volatile than the S&P 500.
Institutional and Insider Ownership
13.3% of Dorchester Minerals, L.P. shares are held by institutional investors. Comparatively, 37.3% of shares of all “Integrated Mining” companies are held by institutional investors. 9.2% of Dorchester Minerals, L.P. shares are held by company insiders. Comparatively, 12.1% of shares of all “Integrated Mining” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This table compares Dorchester Minerals, L.P. and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Dorchester Minerals, L.P.||65.28%||41.71%||41.15%|
|Dorchester Minerals, L.P. Competitors||-15,080.23%||-3.16%||-2.52%|
Valuation and Earnings
This table compares Dorchester Minerals, L.P. and its peers gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Dorchester Minerals, L.P.||$45.34 million||$38.15 million||15.42|
|Dorchester Minerals, L.P. Competitors||$6.81 billion||$2.78 billion||-16.73|
Dorchester Minerals, L.P.’s peers have higher revenue and earnings than Dorchester Minerals, L.P.. Dorchester Minerals, L.P. is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
This is a breakdown of current ratings and price targets for Dorchester Minerals, L.P. and its peers, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Dorchester Minerals, L.P.||0||0||0||0||N/A|
|Dorchester Minerals, L.P. Competitors||916||2957||3030||82||2.33|
As a group, “Integrated Mining” companies have a potential upside of 6.53%. Given Dorchester Minerals, L.P.’s peers higher possible upside, analysts clearly believe Dorchester Minerals, L.P. has less favorable growth aspects than its peers.
Dorchester Minerals, L.P. peers beat Dorchester Minerals, L.P. on 7 of the 12 factors compared.
Dorchester Minerals, L.P. Company Profile
Dorchester Minerals, L.P. is a limited partnership company. The Company is engaged in the acquisition, ownership and administration of Royalty Properties and net profits interests (NPIs). As of December 31, 2016, the Royalty Properties consisted of producing and nonproducing mineral, royalty, overriding royalty, net profits and leasehold interests located in 574 counties and parishes in 25 states. The NPIs represent net profits overriding royalty interests in various properties owned by the Company. As of December 31, 2016, the Company had completed 270 wells on its Royalty Properties in seven states, and 39 new wells completed on its Properties in three states. The Company owns both a royalty interest and a net profits interest. The Company’s general partner is Dorchester Minerals Management LP.
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