Black Stone Minerals (NYSE:BSM) versus 88 Energy (OTCMKTS:EEENF) Financial Review

Black Stone Minerals (NYSE:BSM) and 88 Energy (OTCMKTS:EEENF) are both oils/energy companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, profitability, institutional ownership and earnings.

Earnings and Valuation

This table compares Black Stone Minerals and 88 Energy”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Black Stone Minerals	$505.05 million	6.67	$422.55 million	$1.48	10.09
88 Energy	N/A	N/A	N/A	N/A	N/A

Black Stone Minerals has higher revenue and earnings than 88 Energy.

Profitability

This table compares Black Stone Minerals and 88 Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Black Stone Minerals	64.88%	37.93%	27.04%
88 Energy	N/A	N/A	N/A

Insider & Institutional Ownership

14.5% of Black Stone Minerals shares are held by institutional investors. 18.6% of Black Stone Minerals shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations and price targets for Black Stone Minerals and 88 Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Black Stone Minerals	0	2	1	0	2.33
88 Energy	0	0	0	0	N/A

Black Stone Minerals currently has a consensus price target of $17.50, indicating a potential upside of 17.14%. Given Black Stone Minerals’ higher possible upside, analysts clearly believe Black Stone Minerals is more favorable than 88 Energy.

Summary

Black Stone Minerals beats 88 Energy on 8 of the 8 factors compared between the two stocks.

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.

About 88 Energy

88 Energy Limited engages in the exploration and production of oil and gas properties in the United States and Namibia. The company was formerly known as Tangiers Petroleum Limited and changed its name to 88 Energy Limited in February 2015. 88 Energy Limited was incorporated in 1996 and is based in Subiaco, Australia.