Analyzing Black Stone Minerals (NYSE:BSM) and Comstock Resources (NYSE:CRK)

Comstock Resources (NYSE:CRK) and Black Stone Minerals (NYSE:BSM) are both mid-cap oils/energy companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, earnings, risk, analyst recommendations, profitability, dividends and valuation.

Insider & Institutional Ownership

36.1% of Comstock Resources shares are owned by institutional investors. Comparatively, 14.5% of Black Stone Minerals shares are owned by institutional investors. 2.0% of Comstock Resources shares are owned by company insiders. Comparatively, 18.6% of Black Stone Minerals shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

Comstock Resources pays an annual dividend of $0.50 per share and has a dividend yield of 3.1%. Black Stone Minerals pays an annual dividend of $1.50 per share and has a dividend yield of 10.6%. Comstock Resources pays out -277.8% of its earnings in the form of a dividend. Black Stone Minerals pays out 92.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Comstock Resources	-4.93%	-3.88%	-1.48%
Black Stone Minerals	67.54%	41.49%	29.65%

Earnings & Valuation

This table compares Comstock Resources and Black Stone Minerals”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Comstock Resources	$1.30 billion	3.62	$211.12 million	($0.18)	-89.36
Black Stone Minerals	$471.51 million	6.30	$422.55 million	$1.62	8.70

Black Stone Minerals has lower revenue, but higher earnings than Comstock Resources. Comstock Resources 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.

Volatility & Risk

Comstock Resources has a beta of 0.57, indicating that its share price is 43% less volatile than the S&P 500. Comparatively, Black Stone Minerals has a beta of 0.96, indicating that its share price is 4% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Comstock Resources and Black Stone Minerals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Comstock Resources	3	8	2	0	1.92
Black Stone Minerals	0	2	1	0	2.33

Comstock Resources currently has a consensus price target of $11.78, indicating a potential downside of 26.78%. Black Stone Minerals has a consensus price target of $17.00, indicating a potential upside of 20.57%. Given Black Stone Minerals’ stronger consensus rating and higher probable upside, analysts plainly believe Black Stone Minerals is more favorable than Comstock Resources.

Summary

Black Stone Minerals beats Comstock Resources on 12 of the 16 factors compared between the two stocks.

About Comstock Resources

Comstock Resources, Inc., an independent energy company, engages in the acquisition, exploration, development, and production of natural gas and oil properties in the United States. Its assets are located in the Haynesville and Bossier shales located in North Louisiana and East Texas. The company was incorporated in 1919 and is headquartered in Frisco, Texas. Comstock Resources, Inc. is a subsidiary of Arkoma Drilling, L.P.

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.