Critical Comparison: Par Pacific (NYSE:PARR) versus Dorchester Minerals (NASDAQ:DMLP)

Dorchester Minerals (NASDAQ:DMLP) and Par Pacific (NYSE:PARR) are both energy companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, profitability, valuation, analyst recommendations, institutional ownership and risk.

Valuation & Earnings

This table compares Dorchester Minerals and Par Pacific”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dorchester Minerals	$152.83 million	9.57	$55.25 million	$1.76	16.93
Par Pacific	$7.46 billion	0.51	$369.39 million	$17.14	4.45

Par Pacific has higher revenue and earnings than Dorchester Minerals. Par Pacific is trading at a lower price-to-earnings ratio than Dorchester Minerals, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Dorchester Minerals and Par Pacific, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dorchester Minerals	0	1	0	0	2.00
Par Pacific	0	4	8	1	2.77

Par Pacific has a consensus target price of $90.43, suggesting a potential upside of 18.67%. Given Par Pacific’s stronger consensus rating and higher possible upside, analysts plainly believe Par Pacific is more favorable than Dorchester Minerals.

Risk & Volatility

Dorchester Minerals has a beta of 0.64, meaning that its stock price is 36% less volatile than the S&P 500. Comparatively, Par Pacific has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500.

Institutional & Insider Ownership

19.2% of Dorchester Minerals shares are owned by institutional investors. Comparatively, 92.2% of Par Pacific shares are owned by institutional investors. 5.9% of Dorchester Minerals shares are owned by insiders. Comparatively, 3.6% of Par Pacific shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Dorchester Minerals and Par Pacific’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dorchester Minerals	45.45%	28.43%	27.83%
Par Pacific	9.94%	56.19%	21.61%

Summary

Par Pacific beats Dorchester Minerals on 10 of the 15 factors compared between the two stocks.

About Dorchester Minerals

Dorchester Minerals, L.P. engages in the acquisition, ownership, and administration of royalty properties in the United States. Its royalty properties include producing and nonproducing mineral, royalty, overriding royalty, net profits, and leasehold interests in 593 counties and parishes in 28 states; and net profits interests represent net profits overriding royalty interests in various properties owned by the operating partnership. Dorchester Minerals Management LP serves as the general partner of Dorchester Minerals, L.P. The company was founded in 1982 and is based in Dallas, Texas.

About Par Pacific

Par Pacific Holdings, Inc. owns and operates energy and infrastructure businesses. The company operates through Refining, Retail, and Logistics segments. The Refining segment owns and operates refineries that produce gasoline, distillate, asphalt, and other products primarily for consumption in Kapolei, Hawaii, Newcastle, Wyoming, Tacoma, Washington, and Billings, Montana. The Retail segment operates fuel retail outlets, which sell merchandise, such as soft drinks, prepared foods, and other sundries in Hawaii under the Hele, 76, and nomnom brands; and gasoline, diesel, and retail merchandise in Washington and Idaho. The Logistics segment owns and operates terminals, pipelines, single point mooring, marine vessels, storage facilities, loading and truck racks, and rail facilities to distribute ethanol, petroleum, and refined products throughout Hawaii, the United States West Coast, Washington, the Dakotas, and Wyoming; and a jet fuel storage facility and pipeline that serves Ellsworth Air Force Base in South Dakota. It also holds interest in refined products pipeline. In addition, the company owns and operates a marine terminal, a unit train-capable rail loading terminal; a truck rack, and a proprietary pipeline that serves Joint Base Lewis McChord. The company was formerly known as Par Petroleum Corporation and changed its name to Par Pacific Holdings, Inc. in October 2015. Par Pacific Holdings, Inc. was incorporated in 1984 and is headquartered in Houston, Texas.