Comparing MV Oil Trust (NYSE:MVO) and Black Stone Minerals (NYSE:BSM)

MV Oil Trust (NYSE:MVO – Get Rating) and Black Stone Minerals (NYSE:BSM – Get Rating) are both oils/energy companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, profitability, institutional ownership, earnings and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
MV Oil Trust	93.16%	N/A	293.54%
Black Stone Minerals	71.80%	56.28%	35.40%

Institutional and Insider Ownership

4.7% of MV Oil Trust shares are owned by institutional investors. Comparatively, 16.5% of Black Stone Minerals shares are owned by institutional investors. 21.1% of Black Stone Minerals shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Dividends

MV Oil Trust pays an annual dividend of $1.64 per share and has a dividend yield of 18.0%. Black Stone Minerals pays an annual dividend of $1.90 per share and has a dividend yield of 13.3%. MV Oil Trust pays out 85.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Black Stone Minerals pays out 90.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Black Stone Minerals has raised its dividend for 3 consecutive years. MV Oil Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.

Risk & Volatility

MV Oil Trust has a beta of 0.96, meaning that its stock price is 4% less volatile than the S&P 500. Comparatively, Black Stone Minerals has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500.

Earnings and Valuation

This table compares MV Oil Trust and Black Stone Minerals’ gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MV Oil Trust	$12.08 million	8.67	$11.33 million	$1.91	4.77
Black Stone Minerals	$663.60 million	4.52	$476.48 million	$2.10	6.81

Black Stone Minerals has higher revenue and earnings than MV Oil Trust. MV Oil Trust 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.

Analyst Ratings

This is a summary of current recommendations for MV Oil Trust and Black Stone Minerals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MV Oil Trust	0	0	0	0	N/A
Black Stone Minerals	0	1	3	0	2.75

Black Stone Minerals has a consensus target price of $19.00, suggesting a potential upside of 32.77%. Given Black Stone Minerals’ higher possible upside, analysts plainly believe Black Stone Minerals is more favorable than MV Oil Trust.

Summary

Black Stone Minerals beats MV Oil Trust on 11 of the 16 factors compared between the two stocks.

About MV Oil Trust

(Get Rating)

MV Oil Trust is a close-ended investment trust. It engages in acquiring and holding a term net profits interest for the benefit of the trust unitholders. The company was founded on August 3, 2006 and is headquartered in Houston, TX.

About Black Stone Minerals

(Get Rating)

Black Stone Minerals LP is an exploration company. The firm engages in the exploration of oil and natural gas minerals. It focuses on the operation of Louisiana-Mississippi Salt Basins, Western Gulf, Permian Basin, Palo Duro Basin, East Texas Basin, Anadarko Basin, Appalachian Basin, Arkoma Basin, Bend Arch-Fort Worth, and Southwestern Wyoming. The company was founded in 1876 and is headquartered in Houston, TX.