Critical Contrast: Dorchester Minerals (DMLP) versus The Competition

Dorchester Minerals (NASDAQ:DMLP) is one of 1,050 publicly-traded companies in the “Oil, Gas & Consumable Fuels” industry, but how does it contrast to its competitors? We will compare Dorchester Minerals to similar businesses based on the strength of its analyst recommendations, risk, valuation, profitability, institutional ownership, dividends and earnings.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Dorchester Minerals and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dorchester Minerals	0	1	0	0	2.00
Dorchester Minerals Competitors	5964	26941	40767	2408	2.52

As a group, “Oil, Gas & Consumable Fuels” companies have a potential upside of 21.66%. Given Dorchester Minerals’ competitors stronger consensus rating and higher probable upside, analysts plainly believe Dorchester Minerals has less favorable growth aspects than its competitors.

Profitability

This table compares Dorchester Minerals and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dorchester Minerals	45.45%	28.43%	27.83%
Dorchester Minerals Competitors	-471.71%	20.53%	6.26%

Dividends

Dorchester Minerals pays an annual dividend of $5.09 per share and has a dividend yield of 17.9%. Dorchester Minerals pays out 289.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Oil, Gas & Consumable Fuels” companies pay a dividend yield of 8.6% and pay out -122.4% of their earnings in the form of a dividend.

Volatility and Risk

Dorchester Minerals has a beta of 0.64, meaning that its stock price is 36% less volatile than the S&P 500. Comparatively, Dorchester Minerals’ competitors have a beta of -4.04, meaning that their average stock price is 504% less volatile than the S&P 500.

Earnings and Valuation

This table compares Dorchester Minerals and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Dorchester Minerals	$152.83 million	$55.25 million	16.11
Dorchester Minerals Competitors	$11.50 billion	$5.51 billion	0.24

Dorchester Minerals’ competitors have higher revenue and earnings than Dorchester Minerals. Dorchester Minerals is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Insider and Institutional Ownership

19.2% of Dorchester Minerals shares are owned by institutional investors. Comparatively, 30.7% of shares of all “Oil, Gas & Consumable Fuels” companies are owned by institutional investors. 5.9% of Dorchester Minerals shares are owned by company insiders. Comparatively, 15.5% of shares of all “Oil, Gas & Consumable Fuels” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Dorchester Minerals competitors beat Dorchester Minerals on 9 of the 15 factors compared.

Dorchester Minerals Company Profile

Dorchester Minerals, L.P. engages in the acquisition, ownership, and administration of royalty properties in the United States. Its royalty properties include producing and nonproducing mineral, royalty, 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. The company was founded in 1982 and is based in Dallas, Texas.