Financial Survey: Dorchester Minerals (NASDAQ:DMLP) and Northern Oil and Gas (NYSE:NOG)

Dorchester Minerals (NASDAQ:DMLPGet Free Report) and Northern Oil and Gas (NYSE:NOGGet Free Report) are both oils/energy companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, dividends, profitability, earnings, risk, analyst recommendations and institutional ownership.

Institutional and Insider Ownership

20.5% of Dorchester Minerals shares are owned by institutional investors. Comparatively, 98.8% of Northern Oil and Gas shares are owned by institutional investors. 7.1% of Dorchester Minerals shares are owned by company insiders. Comparatively, 3.2% of Northern Oil and Gas shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Dorchester Minerals and Northern Oil and Gas’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Dorchester Minerals 68.89% 66.48% 63.95%
Northern Oil and Gas 42.61% 40.86% 15.31%

Dividends

Dorchester Minerals pays an annual dividend of $4.03 per share and has a dividend yield of 12.0%. Northern Oil and Gas pays an annual dividend of $1.60 per share and has a dividend yield of 4.1%. 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. Northern Oil and Gas pays out 15.9% of its earnings in the form of a dividend. Northern Oil and Gas has increased its dividend for 2 consecutive years.

Earnings and Valuation

This table compares Dorchester Minerals and Northern Oil and Gas’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Dorchester Minerals $163.80 million 8.10 $110.39 million $2.84 11.81
Northern Oil and Gas $2.17 billion 1.82 $922.97 million $10.04 3.89

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

Risk and Volatility

Dorchester Minerals has a beta of 1.1, indicating that its stock price is 10% more volatile than the S&P 500. Comparatively, Northern Oil and Gas has a beta of 1.85, indicating that its stock price is 85% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Dorchester Minerals and Northern Oil and Gas, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Dorchester Minerals 0 0 0 0 N/A
Northern Oil and Gas 1 2 7 1 2.73

Northern Oil and Gas has a consensus price target of $46.60, suggesting a potential upside of 19.40%. Given Northern Oil and Gas’ higher probable upside, analysts plainly believe Northern Oil and Gas is more favorable than Dorchester Minerals.

Summary

Northern Oil and Gas beats Dorchester Minerals on 10 of the 17 factors compared between the two stocks.

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.

About Northern Oil and Gas

(Get Free Report)

Northern Oil and Gas, Inc., an independent energy company, engages in the acquisition, exploration, exploitation, development, and production of crude oil and natural gas properties in the United States. It primarily holds interests in the Williston Basin, the Appalachian Basin, and the Permian Basin in the United States. The company is based in Minnetonka, Minnesota.

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