Head-To-Head Analysis: Dorchester Minerals (DMLP) and 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 rivals? We will compare Dorchester Minerals to similar companies based on the strength of its dividends, earnings, risk, profitability, valuation, institutional ownership and analyst recommendations.

Dividends

Dorchester Minerals pays an annual dividend of $3.52 per share and has a dividend yield of 11.5%. Dorchester Minerals pays out 200.0% 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 8.4% and pay out -118.5% of their earnings in the form of a dividend.

Volatility and Risk

Dorchester Minerals has a beta of 0.64, suggesting that its stock price is 36% less volatile than the S&P 500. Comparatively, Dorchester Minerals’ rivals have a beta of -4.06, suggesting that their average stock price is 506% less volatile than the S&P 500.

Insider and Institutional Ownership

19.2% of Dorchester Minerals shares are held by institutional investors. Comparatively, 30.6% of shares of all “Oil, Gas & Consumable Fuels” companies are held by institutional investors. 5.9% of Dorchester Minerals shares are held by insiders. Comparatively, 15.5% of shares of all “Oil, Gas & Consumable Fuels” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Dorchester Minerals and its rivals’ 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	-474.33%	20.28%	6.19%

Analyst Recommendations

This is a breakdown of current recommendations for Dorchester Minerals and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dorchester Minerals	0	1	0	0	2.00
Dorchester Minerals Competitors	5954	26911	40724	2392	2.52

As a group, “Oil, Gas & Consumable Fuels” companies have a potential upside of 17.06%. Given Dorchester Minerals’ rivals stronger consensus rating and higher possible upside, analysts clearly believe Dorchester Minerals has less favorable growth aspects than its rivals.

Earnings & Valuation

This table compares Dorchester Minerals and its rivals top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Dorchester Minerals	$192.22 million	$55.25 million	17.33
Dorchester Minerals Competitors	$272.45 billion	$5.51 billion	1.01

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

Summary

Dorchester Minerals rivals 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.