Extraction Oil & Gas (NASDAQ: XOG) and San Juan Basin Royalty Trust (NYSE:SJT) are both energy companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.
Institutional and Insider Ownership
88.3% of Extraction Oil & Gas shares are owned by institutional investors. Comparatively, 24.6% of San Juan Basin Royalty Trust shares are owned by institutional investors. 6.7% of Extraction Oil & Gas shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
This table compares Extraction Oil & Gas and San Juan Basin Royalty Trust’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Extraction Oil & Gas||$604.30 million||3.69||-$44.40 million||($0.49)||-26.35|
|San Juan Basin Royalty Trust||$17.53 million||23.61||$13.92 million||$0.79||11.24|
San Juan Basin Royalty Trust has lower revenue, but higher earnings than Extraction Oil & Gas. Extraction Oil & Gas is trading at a lower price-to-earnings ratio than San Juan Basin Royalty Trust, indicating that it is currently the more affordable of the two stocks.
San Juan Basin Royalty Trust pays an annual dividend of $0.43 per share and has a dividend yield of 4.8%. Extraction Oil & Gas does not pay a dividend. San Juan Basin Royalty Trust pays out 54.4% of its earnings in the form of a dividend. San Juan Basin Royalty Trust has raised its dividend for 4 consecutive years.
This table compares Extraction Oil & Gas and San Juan Basin Royalty Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Extraction Oil & Gas||-7.35%||1.34%||0.73%|
|San Juan Basin Royalty Trust||94.95%||499.42%||284.57%|
This is a summary of current ratings and recommmendations for Extraction Oil & Gas and San Juan Basin Royalty Trust, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Extraction Oil & Gas||0||2||11||0||2.85|
|San Juan Basin Royalty Trust||0||0||0||0||N/A|
Extraction Oil & Gas presently has a consensus target price of $19.75, suggesting a potential upside of 52.98%. Given Extraction Oil & Gas’ higher possible upside, equities research analysts clearly believe Extraction Oil & Gas is more favorable than San Juan Basin Royalty Trust.
San Juan Basin Royalty Trust beats Extraction Oil & Gas on 9 of the 15 factors compared between the two stocks.
About Extraction Oil & Gas
Extraction Oil & Gas, Inc., formerly Extraction Oil & Gas, LLC, is an energy company. It is focused on the acquisition, development and production of oil, natural gas and natural gas liquids (NGL) reserves in the Rocky Mountains, primarily in the Wattenberg Field of the Denver-Julesburg Basin (the DJ Basin) of Colorado. It focuses on the development of the Codell and Niobrara formations. It offers its exploration and production processes in various steps, such as seismic, site preparation, drilling the well, completing the well, monitoring the well and reclaiming the site. The Company utilizes sound walls to mute or redirect noise caused by its operations. The Company uses an electric rig to manage its drilling operations. It uses vapor recovery units to capture emissions from storage facilities. It uses lease automatic custody transfer (LACT) units to collect oil from tanks in a closed-loop system that manages air emissions associated with the oil gathering and transportation process.
About San Juan Basin Royalty Trust
San Juan Basin Royalty Trust is an express trust. The principal asset of the Trust is Royalty. Its Royalty is carved from working, royalty and other oil and natural gas interests owned by Southland Royalty Company, the predecessor to Burlington Resources Oil & Gas Company LP (Burlington), in properties located in the San Juan Basin of northwestern New Mexico (Subject Interests). The Trustee of the Trust is Compass Bank. The function of the Trustee is to collect the net proceeds attributable to the Royalty, to pay all expenses and charges of the Trust and distribute the remaining available income to the Unit Holders. The Trust does not operate the Subject Interests and is not empowered to carry on any business activity. It is a widely held fixed investment trust (WHFIT) and is classified as a non-mortgage widely held fixed investment trust (NMWHFIT) for federal income tax purposes. As of December 31, 2016, 99% of the Trust’s estimated proved reserves consisted of natural gas reserves.
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