Chesapeake Granite Wash Trust (NYSE:CHKR) and Dorchester Minerals (NASDAQ:DMLP) are both small-cap oils/energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, valuation, dividends, earnings, risk, analyst recommendations and institutional ownership.

Insider and Institutional Ownership

0.7% of Chesapeake Granite Wash Trust shares are owned by institutional investors. Comparatively, 16.7% of Dorchester Minerals shares are owned by institutional investors. 9.4% of Dorchester Minerals shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Chesapeake Granite Wash Trust and Dorchester Minerals’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Chesapeake Granite Wash Trust $13.50 million 3.64 $11.30 million N/A N/A
Dorchester Minerals $73.28 million 8.65 $51.94 million N/A N/A

Dorchester Minerals has higher revenue and earnings than Chesapeake Granite Wash Trust.

Dividends

Chesapeake Granite Wash Trust pays an annual dividend of $0.12 per share and has a dividend yield of 11.4%. Dorchester Minerals pays an annual dividend of $1.93 per share and has a dividend yield of 10.6%. Dorchester Minerals has raised its dividend for 2 consecutive years.

Risk and Volatility

Chesapeake Granite Wash Trust has a beta of 1.29, suggesting that its share price is 29% more volatile than the S&P 500. Comparatively, Dorchester Minerals has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Chesapeake Granite Wash Trust and Dorchester Minerals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Chesapeake Granite Wash Trust 0 0 0 0 N/A
Dorchester Minerals 0 0 0 0 N/A

Profitability

This table compares Chesapeake Granite Wash Trust and Dorchester Minerals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Chesapeake Granite Wash Trust 81.70% 42.63% 42.51%
Dorchester Minerals 74.48% 58.74% 57.06%

Summary

Dorchester Minerals beats Chesapeake Granite Wash Trust on 8 of the 11 factors compared between the two stocks.

Chesapeake Granite Wash Trust Company Profile

Chesapeake Granite Wash Trust owns royalty interests in oil, natural gas liquids, and natural gas properties located in the Colony Granite Wash play in Washita County in the Anadarko Basin of Western Oklahoma. The company has royalty interests in 69 producing wells and 118 development wells, and in approximately 26,400 net acres of area. As of December 31, 2018, its reserve estimates for the royalty interests included 5,075 thousand barrels of oil equivalent of proved developed reserves. The company was founded in 2011 and is based in Houston, Texas.

Dorchester Minerals Company Profile

Dorchester Minerals, L.P. engages in the acquisition, ownership, and administration of producing and nonproducing natural gas and crude oil royalty, net profits, and leasehold interests in the United States. The company's royalty properties consist of producing and nonproducing mineral, royalty, overriding royalty, net profits, and leasehold interests located in 574 counties and parishes in 25 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.

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