Financial Analysis: Black Stone Minerals (NYSE:BSM) and ENI (NYSE:E)

Black Stone Minerals (NYSE:BSMGet Rating) and ENI (NYSE:EGet Rating) are both oils/energy companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, risk, valuation, earnings, analyst recommendations, profitability and dividends.

Profitability

This table compares Black Stone Minerals and ENI’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Black Stone Minerals 69.77% 45.85% 27.65%
ENI 13.45% 25.36% 8.01%

Volatility & Risk

Black Stone Minerals has a beta of 1.07, meaning that its stock price is 7% more volatile than the S&P 500. Comparatively, ENI has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500.

Dividends

Black Stone Minerals pays an annual dividend of $1.80 per share and has a dividend yield of 11.0%. ENI pays an annual dividend of $0.64 per share and has a dividend yield of 2.0%. Black Stone Minerals pays out 95.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. ENI pays out 6.2% of its earnings in the form of a dividend. Black Stone Minerals has increased its dividend for 2 consecutive years. Black Stone Minerals is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Ratings

This is a summary of current ratings and target prices for Black Stone Minerals and ENI, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Black Stone Minerals 0 1 2 1 3.00
ENI 1 4 7 0 2.50

Black Stone Minerals currently has a consensus price target of $20.25, indicating a potential upside of 23.78%. ENI has a consensus price target of $16.25, indicating a potential downside of 48.75%. Given Black Stone Minerals’ stronger consensus rating and higher probable upside, equities analysts clearly believe Black Stone Minerals is more favorable than ENI.

Earnings and Valuation

This table compares Black Stone Minerals and ENI’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Black Stone Minerals $359.26 million 9.54 $181.99 million $1.88 8.70
ENI $92.01 billion 0.62 $6.89 billion $10.31 3.08

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

Institutional and Insider Ownership

16.5% of Black Stone Minerals shares are owned by institutional investors. Comparatively, 1.2% of ENI shares are owned by institutional investors. 20.5% of Black Stone Minerals shares are owned by insiders. Comparatively, 0.0% of ENI shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Black Stone Minerals beats ENI on 13 of the 18 factors compared between the two stocks.

About Black Stone Minerals

(Get Rating)

Black Stone Minerals, L.P., together with its subsidiaries, owns and manages oil and natural gas mineral interests. It owns mineral interests in approximately 16.8 million gross acres, nonparticipating royalty interests in 1.8 million gross acres, and overriding royalty interests in 1.7 million gross acres located in 41 states in the United States. As of December 31, 2021, the company had a total estimated proved oil and natural gas reserves of 59,824 barrels of oil equivalent. Black Stone Minerals, L.P. was founded in 1876 and is based in Houston, Texas.

About ENI

(Get Rating)

Eni S.p.A. engages in the exploration, development, and production of crude oil and natural gas. It operates through Exploration & Production; Global Gas & LNG Portfolio; Refining & Marketing and Chemicals; Plenitude and Power; and Corporate and Other activities segments. The Exploration & Production segment is involved in the research, development, and production of oil, condensates and natural gas; and forestry conservation and CO2 capture and storage projects. The Global Gas & LNG Portfolio segment engages in the supply and wholesale of natural gas by pipeline, international transport; and purchase and marketing of LNG. The Refining & Marketing and Chemicals segment is involved in the processing, supply, distribution, and marketing of fuels and chemicals. The Eni gas e luce, Power & Renewables segment engages in the retail sales of gas, electricity, and related activities, as well as in the production and wholesale of electricity produced by thermoelectric and renewable plants. As of December 31, 2021, it had net proved reserves of 6,628 million barrels of oil equivalent; and installed operational capacity of 4.5 GW. The company was founded in 1953 and is headquartered in Rome, Italy.

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