Dorchester Minerals, L.P. (NASDAQ: DMLP) and BHP Billiton PLC (NYSE:BBL) are both oils/energy companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, earnings, analyst recommendations, valuation and dividends.
Dorchester Minerals, L.P. pays an annual dividend of $1.14 per share and has a dividend yield of 7.8%. BHP Billiton PLC pays an annual dividend of $1.66 per share and has a dividend yield of 4.6%. Dorchester Minerals, L.P. pays out 120.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.
Valuation and Earnings
This table compares Dorchester Minerals, L.P. and BHP Billiton PLC’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Dorchester Minerals, L.P.||$45.34 million||10.39||$38.15 million||$0.95||15.37|
|BHP Billiton PLC||$38.66 billion||2.50||$19.37 billion||N/A||N/A|
BHP Billiton PLC has higher revenue and earnings than Dorchester Minerals, L.P..
Insider and Institutional Ownership
13.4% of Dorchester Minerals, L.P. shares are held by institutional investors. Comparatively, 4.1% of BHP Billiton PLC shares are held by institutional investors. 9.2% of Dorchester Minerals, L.P. shares are held by 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 BHP Billiton PLC’s 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%|
|BHP Billiton PLC||N/A||N/A||N/A|
This is a summary of current ratings for Dorchester Minerals, L.P. and BHP Billiton PLC, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Dorchester Minerals, L.P.||0||0||0||0||N/A|
|BHP Billiton PLC||1||2||1||0||2.00|
BHP Billiton PLC has a consensus price target of $38.00, indicating a potential upside of 4.63%. Given BHP Billiton PLC’s higher possible upside, analysts clearly believe BHP Billiton PLC is more favorable than Dorchester Minerals, L.P..
Risk & Volatility
Dorchester Minerals, L.P. has a beta of 0.81, meaning that its share price is 19% less volatile than the S&P 500. Comparatively, BHP Billiton PLC has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500.
Dorchester Minerals, L.P. beats BHP Billiton PLC on 7 of the 13 factors compared between the two stocks.
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.
BHP Billiton PLC Company Profile
BHP Billiton Plc is a global resources company. The Company is a producer of various commodities, including iron ore, metallurgical coal, copper and uranium. Its segments include Petroleum, Copper, Iron Ore and Coal. The Petroleum segment is engaged in the exploration, development and production of oil and gas. The Copper segment is engaged in mining of copper, silver, lead, zinc, molybdenum, uranium and gold. The Iron Ore segment is engaged in mining of iron ore. The Coal segment is engaged in mining of metallurgical coal and thermal (energy) coal. Its businesses include Minerals Australia, Minerals Americas, Petroleum and Marketing. It extracts and processes minerals, oil and gas from its production operations located primarily in Australia and the Americas. It manages product distribution through its global logistics chain, including freight and pipeline transportation. It sells its products through direct supply agreements with its customers and on global commodity exchanges.
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