Black Stone Minerals, L.P. (NYSE: BSM) is one of 246 public companies in the “Oil & Gas Exploration and Production” industry, but how does it contrast to its peers? We will compare Black Stone Minerals, L.P. to similar companies based on the strength of its dividends, institutional ownership, profitability, analyst recommendations, risk, valuation and earnings.

Earnings and Valuation

This table compares Black Stone Minerals, L.P. and its peers gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Black Stone Minerals, L.P. $332.04 million $267.20 million 20.78
Black Stone Minerals, L.P. Competitors $1.42 billion $613.46 million 20.56

Black Stone Minerals, L.P.’s peers have higher revenue and earnings than Black Stone Minerals, L.P.. Black Stone 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.

Risk & Volatility

Black Stone Minerals, L.P. has a beta of 0.28, indicating that its share price is 72% less volatile than the S&P 500. Comparatively, Black Stone Minerals, L.P.’s peers have a beta of 1.42, indicating that their average share price is 42% more volatile than the S&P 500.

Dividends

Black Stone Minerals, L.P. pays an annual dividend of $1.25 per share and has a dividend yield of 7.2%. Black Stone Minerals, L.P. pays out 150.6% 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, “Oil & Gas Exploration and Production” companies pay a dividend yield of 1.8% and pay out 384.2% of their earnings in the form of a dividend. Black Stone Minerals, L.P. is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Institutional and Insider Ownership

21.4% of Black Stone Minerals, L.P. shares are owned by institutional investors. Comparatively, 63.0% of shares of all “Oil & Gas Exploration and Production” companies are owned by institutional investors. 25.0% of Black Stone Minerals, L.P. shares are owned by insiders. Comparatively, 11.9% of shares of all “Oil & Gas Exploration and Production” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Black Stone Minerals, L.P. and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Black Stone Minerals, L.P. 0 1 3 0 2.75
Black Stone Minerals, L.P. Competitors 1436 7449 12072 255 2.53

Black Stone Minerals, L.P. presently has a consensus target price of $18.50, suggesting a potential upside of 7.25%. As a group, “Oil & Gas Exploration and Production” companies have a potential upside of 37.39%. Given Black Stone Minerals, L.P.’s peers higher probable upside, analysts clearly believe Black Stone Minerals, L.P. has less favorable growth aspects than its peers.

Profitability

This table compares Black Stone Minerals, L.P. and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Black Stone Minerals, L.P. 22.71% 12.67% 7.72%
Black Stone Minerals, L.P. Competitors -427.12% -1.24% 1.83%

Summary

Black Stone Minerals, L.P. beats its peers on 9 of the 15 factors compared.

Black Stone Minerals, L.P. Company Profile

Black Stone Minerals, L.P. is an owner of oil and natural gas mineral interests in the United States. The Company’s principal business is maximizing the value of its existing portfolio of mineral and royalty assets through active management and expanding its asset base through acquisitions of additional mineral and royalty interests. As of December 31, 2016, it owned mineral interests in approximately 15.5 million acres, with an average 45.7% ownership interest in that acreage. As of December 31, 2016, it also owned nonparticipating royalty interests in 1.5 million acres and overriding royalty interests in 1.5 million acres. As of December 31, 2016, these non-cost-bearing interests, which it referred to collectively as its mineral and royalty interests, included ownership in 50,000 producing wells. As of December 31, 2016, its mineral and royalty interests were located in 41 states and in 64 onshore basins in the continental United States.

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