Black Stone Minerals (NYSE:BSM) and Toro (NASDAQ:TORO) Financial Contrast

Toro (NASDAQ:TORO) and Black Stone Minerals (NYSE:BSM) are both energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, analyst recommendations, profitability, valuation, dividends and institutional ownership.

Analyst Recommendations

This is a breakdown of recent ratings for Toro and Black Stone Minerals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Toro	0	1	0	0	2.00
Black Stone Minerals	0	5	0	0	2.00

Black Stone Minerals has a consensus price target of $15.00, suggesting a potential upside of 2.95%. Given Black Stone Minerals’ higher probable upside, analysts clearly believe Black Stone Minerals is more favorable than Toro.

Volatility and Risk

Toro has a beta of 2.59, meaning that its stock price is 159% more volatile than the S&P 500. Comparatively, Black Stone Minerals has a beta of 0.15, meaning that its stock price is 85% less volatile than the S&P 500.

Insider and Institutional Ownership

1.7% of Toro shares are owned by institutional investors. Comparatively, 14.5% of Black Stone Minerals shares are owned by institutional investors. 17.7% of Black Stone Minerals shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Toro and Black Stone Minerals”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Toro	$21.08 million	5.56	$5.93 million	$0.04	136.38
Black Stone Minerals	$469.92 million	6.60	$299.93 million	$1.21	12.04

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Toro	22.67%	2.49%	1.43%
Black Stone Minerals	61.72%	41.48%	25.30%

Summary

Black Stone Minerals beats Toro on 10 of the 12 factors compared between the two stocks.

About Toro

Toro Corp., a shipping company, acquires, owns, charters, and operates oceangoing tanker vessels and provides seaborne transportation services for crude oil LPG, and refined petroleum products worldwide. The company operates in three segments: Aframax/LR2 Tanker, Handysize Tanker, and LPG Carrier. As of December 31, 2023, it operated a fleet of one Handysize tanker vessel; one Aframax/LR2 vessel; and four LPG carrier vessels with an aggregate cargo carrying capacity of 0.1 million deadweight ton. Toro Corp. was incorporated in 2022 and is based in Limassol, Cyprus.

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.