New Concept Energy (NYSE:GBR) versus Black Stone Minerals (NYSE:BSM) Financial Analysis

Black Stone Minerals (NYSE:BSM – Get Rating) and New Concept Energy (NYSE:GBR – Get Rating) are both oils/energy companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, risk, dividends, earnings, analyst recommendations, institutional ownership and profitability.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Black Stone Minerals and New Concept Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Black Stone Minerals	0	1	2	0	2.67
New Concept Energy	0	0	0	0	N/A

Black Stone Minerals presently has a consensus price target of $19.00, suggesting a potential upside of 15.85%. Given Black Stone Minerals’ higher probable upside, equities research analysts clearly believe Black Stone Minerals is more favorable than New Concept Energy.

Institutional and Insider Ownership

16.5% of Black Stone Minerals shares are held by institutional investors. Comparatively, 4.2% of New Concept Energy shares are held by institutional investors. 20.5% of Black Stone Minerals shares are held by insiders. Comparatively, 2.1% of New Concept Energy shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Black Stone Minerals and New Concept Energy’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	$663.60 million	5.19	$476.48 million	$2.76	5.94
New Concept Energy	$210,000.00	N/A	$180,000.00	$0.05	20.40

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

Risk & Volatility

Black Stone Minerals has a beta of 1.04, suggesting that its share price is 4% more volatile than the S&P 500. Comparatively, New Concept Energy has a beta of 0.61, suggesting that its share price is 39% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Black Stone Minerals	77.07%	54.18%	36.42%
New Concept Energy	90.57%	4.20%	4.15%

Summary

Black Stone Minerals beats New Concept Energy on 10 of the 12 factors compared between the two stocks.

About Black Stone Minerals

(Get Rating)

Black Stone Minerals LP is an exploration company. The firm engages in the exploration of oil and natural gas minerals. It focuses on the operation of Louisiana-Mississippi Salt Basins, Western Gulf, Permian Basin, Palo Duro Basin, East Texas Basin, Anadarko Basin, Appalachian Basin, Arkoma Basin, Bend Arch-Fort Worth, and Southwestern Wyoming. The company was founded in 1876 and is headquartered in Houston, TX.

About New Concept Energy

(Get Rating)

New Concept Energy, Inc. engages in the provision of real estate rental services. It also maintains property and liability insurance intended to cover claims for its real estate and corporate operations. The company was founded in 1978 and is headquartered in Dallas, TX.