Dynagas LNG Partners (NYSE:DLNG) & SandRidge Energy (NYSE:SD) Head-To-Head Comparison

Dynagas LNG Partners (NYSE:DLNG) and SandRidge Energy (NYSE:SD) are both small-cap energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, risk, institutional ownership, earnings, profitability, valuation and analyst recommendations.

Profitability

This table compares Dynagas LNG Partners and SandRidge Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dynagas LNG Partners	42.33%	13.05%	6.74%
SandRidge Energy	46.06%	13.62%	10.93%

Risk & Volatility

Dynagas LNG Partners has a beta of 0.54, meaning that its stock price is 46% less volatile than the S&P 500. Comparatively, SandRidge Energy has a beta of 0.48, meaning that its stock price is 52% less volatile than the S&P 500.

Valuation and Earnings

This table compares Dynagas LNG Partners and SandRidge Energy”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dynagas LNG Partners	$156.62 million	0.83	$61.60 million	$1.68	2.12
SandRidge Energy	$180.12 million	2.85	$70.20 million	$2.24	6.19

SandRidge Energy has higher revenue and earnings than Dynagas LNG Partners. Dynagas LNG Partners is trading at a lower price-to-earnings ratio than SandRidge Energy, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and price targets for Dynagas LNG Partners and SandRidge Energy, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dynagas LNG Partners	0	1	0	0	2.00
SandRidge Energy	0	2	0	0	2.00

Institutional & Insider Ownership

61.8% of SandRidge Energy shares are owned by institutional investors. 1.6% of SandRidge Energy shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

Dynagas LNG Partners pays an annual dividend of $0.20 per share and has a dividend yield of 5.6%. SandRidge Energy pays an annual dividend of $0.52 per share and has a dividend yield of 3.7%. Dynagas LNG Partners pays out 11.9% of its earnings in the form of a dividend. SandRidge Energy pays out 23.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. SandRidge Energy has increased its dividend for 2 consecutive years. Dynagas LNG Partners is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

SandRidge Energy beats Dynagas LNG Partners on 11 of the 14 factors compared between the two stocks.

About Dynagas LNG Partners

Dynagas LNG Partners LP, through its subsidiaries, operates in the seaborne transportation industry in Greece and internationally. The company owns and operates liquefied natural gas (LNG) carriers. Its fleet consists of six LNG carriers with an aggregate carrying capacity of approximately 914,000 cubic meters. Dynagas GP LLC serves as the general partner of Dynagas LNG Partners LP. The company was incorporated in 2013 and is headquartered in Athens, Greece.

About SandRidge Energy

SandRidge Energy, Inc. engages in the acquisition, development, and production of oil, natural gas, and natural gas liquids in the United States Mid-Continent. The company was incorporated in 2006 and is headquartered in Oklahoma City, Oklahoma.