SilverBow Resources (NYSE:SBOW) versus Dorchester Minerals (NASDAQ:DMLP) Financial Analysis

SilverBow Resources (NYSE:SBOW) and Dorchester Minerals (NASDAQ:DMLP) are both small-cap oils/energy companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, profitability, valuation, analyst recommendations, dividends and institutional ownership.

Analyst Ratings

This is a summary of current recommendations for SilverBow Resources and Dorchester Minerals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SilverBow Resources	0	3	4	0	2.57
Dorchester Minerals	0	0	0	0	N/A

SilverBow Resources presently has a consensus target price of $44.67, suggesting a potential upside of 44.09%. Given SilverBow Resources’ higher possible upside, analysts plainly believe SilverBow Resources is more favorable than Dorchester Minerals.

Profitability

This table compares SilverBow Resources and Dorchester Minerals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SilverBow Resources	24.41%	16.48%	7.66%
Dorchester Minerals	66.57%	60.04%	57.56%

Risk & Volatility

SilverBow Resources has a beta of 2.52, meaning that its stock price is 152% more volatile than the S&P 500. Comparatively, Dorchester Minerals has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500.

Insider & Institutional Ownership

91.8% of SilverBow Resources shares are held by institutional investors. Comparatively, 19.2% of Dorchester Minerals shares are held by institutional investors. 4.0% of SilverBow Resources shares are held by insiders. Comparatively, 7.1% of Dorchester Minerals shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares SilverBow Resources and Dorchester Minerals’ gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SilverBow Resources	$652.36 million	1.21	$297.72 million	$7.40	4.19
Dorchester Minerals	$163.80 million	7.46	$110.39 million	$2.57	12.02

SilverBow Resources has higher revenue and earnings than Dorchester Minerals. SilverBow Resources is trading at a lower price-to-earnings ratio than Dorchester Minerals, indicating that it is currently the more affordable of the two stocks.

Summary

SilverBow Resources beats Dorchester Minerals on 7 of the 13 factors compared between the two stocks.

About SilverBow Resources

SilverBow Resources, Inc., an independent oil and gas company, exploration, develops, acquires, and operates oil and natural gas properties in the Eagle Ford shale and Austin Chalk located in South Texas. The company was formerly known as Swift Energy Company and changed its name to SilverBow Resources, Inc. in May 2017. SilverBow Resources, Inc. was founded in 1979 and is headquartered in Houston, Texas.

About Dorchester Minerals

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.