Critical Survey: SandRidge Mississippian Trust I (SDT) & Its Competitors

SandRidge Mississippian Trust I (NYSE: SDT) is one of 227 publicly-traded companies in the “Oil & Gas Exploration and Production” industry, but how does it contrast to its rivals? We will compare SandRidge Mississippian Trust I to similar businesses based on the strength of its profitability, dividends, risk, analyst recommendations, earnings, valuation and institutional ownership.

Dividends

SandRidge Mississippian Trust I pays an annual dividend of $0.18 per share and has a dividend yield of 22.9%. SandRidge Mississippian Trust I pays out 81.8% 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, “Oil & Gas Exploration and Production” companies pay a dividend yield of 1.7% and pay out 293.2% of their earnings in the form of a dividend. SandRidge Mississippian Trust I is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares SandRidge Mississippian Trust I and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
SandRidge Mississippian Trust I $18.14 million $15.26 million 3.57
SandRidge Mississippian Trust I Competitors $1.86 billion -$438.87 million -25.22

SandRidge Mississippian Trust I’s rivals have higher revenue, but lower earnings than SandRidge Mississippian Trust I. SandRidge Mississippian Trust I is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares SandRidge Mississippian Trust I and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
SandRidge Mississippian Trust I 68.23% 20.24% 20.24%
SandRidge Mississippian Trust I Competitors -300.32% 23.81% 5.60%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for SandRidge Mississippian Trust I and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
SandRidge Mississippian Trust I 0 0 0 0 N/A
SandRidge Mississippian Trust I Competitors 1488 7722 12517 261 2.53

As a group, “Oil & Gas Exploration and Production” companies have a potential upside of 33.08%. Given SandRidge Mississippian Trust I’s rivals higher possible upside, analysts plainly believe SandRidge Mississippian Trust I has less favorable growth aspects than its rivals.

Insider and Institutional Ownership

1.2% of SandRidge Mississippian Trust I shares are held by institutional investors. Comparatively, 61.4% of shares of all “Oil & Gas Exploration and Production” companies are held by institutional investors. 12.4% of shares of all “Oil & Gas Exploration and Production” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Risk & Volatility

SandRidge Mississippian Trust I has a beta of 0.74, indicating that its stock price is 26% less volatile than the S&P 500. Comparatively, SandRidge Mississippian Trust I’s rivals have a beta of 1.39, indicating that their average stock price is 39% more volatile than the S&P 500.

About SandRidge Mississippian Trust I

SandRidge Mississippian Trust I is a statutory trust formed by and among SandRidge Energy, Inc. (SandRidge), The Bank of New York Mellon Trust Company, N.A., and The Corporation Trust Company. Sandridge offers various services to the Company, such as the operation of its development wells; remittance of net proceeds from the sale of associated production to the Company; administrative services, such as accounting, tax preparation, bookkeeping and informational services performed on behalf of the Company, and derivative agreement services related to production. The Company holds Royalty Interests in specified oil and natural gas properties located in the Mississippian formation in Alfalfa, Garfield, Grant and Woods counties in Oklahoma. The Mississippian formation is a carbonate hydrocarbon system located on the Anadarko Shelf. The top of the formation lies stratigraphically between the Pennsylvanian-aged Morrow formation and the Devonian-aged Woodford Shale formation.

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