Comparing Range Resources (NYSE:RRC) & Dorchester Minerals (NASDAQ:DMLP)

Range Resources (NYSE:RRCGet Free Report) and Dorchester Minerals (NASDAQ:DMLPGet Free Report) are both oils/energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, valuation, institutional ownership, profitability, earnings and dividends.

Risk & Volatility

Range Resources has a beta of 1.83, indicating that its stock price is 83% more volatile than the S&P 500. Comparatively, Dorchester Minerals has a beta of 1.1, indicating that its stock price is 10% more volatile than the S&P 500.

Dividends

Range Resources pays an annual dividend of $0.32 per share and has a dividend yield of 1.0%. Dorchester Minerals pays an annual dividend of $4.03 per share and has a dividend yield of 12.2%. Range Resources pays out 9.0% of its earnings in the form of a dividend. Dorchester Minerals pays out 141.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Earnings and Valuation

This table compares Range Resources and Dorchester Minerals’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Range Resources $3.37 billion 2.37 $871.14 million $3.54 9.34
Dorchester Minerals $163.80 million 7.96 $110.39 million $2.84 11.60

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

Profitability

This table compares Range Resources and Dorchester Minerals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Range Resources 25.82% 15.87% 7.96%
Dorchester Minerals 68.89% 66.48% 63.95%

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Range Resources and Dorchester Minerals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Range Resources 3 9 6 0 2.17
Dorchester Minerals 0 0 0 0 N/A

Range Resources currently has a consensus target price of $34.79, indicating a potential upside of 5.26%. Given Range Resources’ higher probable upside, equities research analysts plainly believe Range Resources is more favorable than Dorchester Minerals.

Institutional & Insider Ownership

94.7% of Range Resources shares are held by institutional investors. Comparatively, 20.5% of Dorchester Minerals shares are held by institutional investors. 1.6% of Range Resources shares are held by company insiders. Comparatively, 7.1% of Dorchester Minerals shares are held by company 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.

Summary

Range Resources beats Dorchester Minerals on 8 of the 15 factors compared between the two stocks.

About Range Resources

(Get Free Report)

Range Resources Corporation operates as an independent natural gas, natural gas liquids (NGLs), crude oil, and condensate company in the United States. The company engages in the exploration, development, and acquisition of natural gas and crude oil properties located in the Appalachian region. It sells natural gas to utilities, marketing and midstream companies, and industrial users; NGLs to petrochemical end users, marketers/traders, and natural gas processors; and oil and condensate to crude oil processors, transporters, and refining and marketing companies. The company was formerly known as Lomak Petroleum Inc. and changed its name to Range Resources Corporation in August 1998. Range Resources Corporation was founded in 1976 and is headquartered in Fort Worth, Texas.

About Dorchester Minerals

(Get Free Report)

Dorchester Minerals, L.P. engages in the acquisition, ownership, and administration of producing and nonproducing natural gas and crude oil royalty, net profit, and leasehold interests in the United States. The company's royalty properties consist of producing and nonproducing mineral, royalty, and 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. Dorchester Minerals, L.P. was founded in 1982 and is based in Dallas, Texas.

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