Head to Head Review: Black Stone Minerals (NYSE:BSM) versus Daybreak Oil and Gas (OTCMKTS:DBRM)

Daybreak Oil and Gas (OTCMKTS:DBRM) and Black Stone Minerals (NYSE:BSM) are both energy companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, valuation, risk, dividends, earnings, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a breakdown of current recommendations for Daybreak Oil and Gas and Black Stone Minerals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Daybreak Oil and Gas	0	0	0	0	N/A
Black Stone Minerals	0	2	1	0	2.33

Black Stone Minerals has a consensus target price of $19.33, indicating a potential upside of 22.99%. Given Black Stone Minerals’ higher possible upside, analysts clearly believe Black Stone Minerals is more favorable than Daybreak Oil and Gas.

Insider and Institutional Ownership

10.3% of Daybreak Oil and Gas shares are owned by institutional investors. Comparatively, 14.5% of Black Stone Minerals shares are owned by institutional investors. 36.3% of Daybreak Oil and Gas shares are owned by company insiders. Comparatively, 19.6% of Black Stone Minerals shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Daybreak Oil and Gas and Black Stone Minerals’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Daybreak Oil and Gas	N/A	N/A	N/A	($0.01)	-0.20
Black Stone Minerals	$592.22 million	5.58	$422.55 million	$1.87	8.41

Black Stone Minerals has higher revenue and earnings than Daybreak Oil and Gas. Daybreak Oil and Gas 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.

Profitability

This table compares Daybreak Oil and Gas and Black Stone Minerals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Daybreak Oil and Gas	N/A	N/A	N/A
Black Stone Minerals	70.46%	42.38%	30.78%

Summary

Black Stone Minerals beats Daybreak Oil and Gas on 9 of the 10 factors compared between the two stocks.

About Daybreak Oil and Gas

Daybreak Oil and Gas, Inc. engages in the exploration, development, and production of crude oil and natural gas in the United States. It holds 42.5% interests in the East Slopes project located in the southeastern part of the San Joaquin Basin near Bakersfield, California; and 45.3% interests in the Reabold project located in the Monterey and Contra Costa counties, California. The company was formerly known as Daybreak Mines, Inc. and changed its name to Daybreak Oil and Gas, Inc. in October 2005. Daybreak Oil and Gas, Inc. was incorporated in 1955 and is based in Friendswood, Texas.

About Black Stone Minerals

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 1.6 million gross acres located in 41 states in the United States. The company was founded in 1876 and is based in Houston, Texas.