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Reviewing Black Stone Minerals (NYSE:BSM) and Southwestern Energy (NYSE:SWN)

Defense World ·  Sep 23, 2022 01:51

Black Stone Minerals (NYSE:BSM – Get Rating) and Southwestern Energy (NYSE:SWN – Get Rating) are both mid-cap oils/energy companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, risk, dividends, valuation and profitability.

Risk and Volatility

Black Stone Minerals has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500. Comparatively, Southwestern Energy has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500.

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Analyst Ratings

This is a summary of recent ratings and target prices for Black Stone Minerals and Southwestern Energy, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Black Stone Minerals 0 1 2 1 3.00
Southwestern Energy 0 7 11 0 2.61
Black Stone Minerals presently has a consensus price target of $19.75, indicating a potential upside of 27.17%. Southwestern Energy has a consensus price target of $9.67, indicating a potential upside of 42.67%. Given Southwestern Energy's higher probable upside, analysts clearly believe Southwestern Energy is more favorable than Black Stone Minerals.

Institutional & Insider Ownership

15.1% of Black Stone Minerals shares are owned by institutional investors. Comparatively, 82.3% of Southwestern Energy shares are owned by institutional investors. 21.1% of Black Stone Minerals shares are owned by insiders. Comparatively, 0.6% of Southwestern Energy shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Black Stone Minerals and Southwestern Energy's net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Black Stone Minerals 60.34% 41.83% 24.20%
Southwestern Energy -8.58% 165.90% 11.52%

Earnings & Valuation

This table compares Black Stone Minerals and Southwestern Energy's revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Black Stone Minerals $359.26 million 9.69 $181.99 million $1.18 13.16
Southwestern Energy $6.67 billion 1.13 -$25.00 million ($1.40) -4.84

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

Summary

Black Stone Minerals beats Southwestern Energy on 9 of the 15 factors compared between the two stocks.

About Black Stone Minerals

(Get Rating)

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 1.7 million gross acres located in 41 states in the United States. As of December 31, 2021, the company had a total estimated proved oil and natural gas reserves of 59,824 barrels of oil equivalent. Black Stone Minerals, L.P. was founded in 1876 and is based in Houston, Texas.

About Southwestern Energy

(Get Rating)

Southwestern Energy Company, an independent energy company, engages in the exploration, development, and production of natural gas, oil, and natural gas liquids (NGLs) in the United States. It operates through two segments, Exploration and Production, and Marketing. The company focuses on the development of unconventional natural gas and oil reservoirs located in Pennsylvania, West Virginia, Ohio, and Louisiana. As of December 31, 2021, it had approximately 768,050 net acres in Appalachia; a total of 1,527 wells on production; and approximately proved natural gas, oil, and NGLs reserves comprise 21,148 billion cubic feet of natural gas equivalent (Bcfe). It also engages in the marketing and transportation of natural gas, oil, and NGLs. The company serves LNG exporters, energy companies, utilities, and industrial purchasers of natural gas. Southwestern Energy Company was incorporated in 1929 and is headquartered in Spring, Texas.

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