Black Stone Minerals (NYSE:BSM) and TORAY INDUSTRIE/ADR (OTCMKTS:TRYIY) are both oils/energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, valuation, analyst recommendations, dividends, risk, institutional ownership and earnings.
Valuation and Earnings
This table compares Black Stone Minerals and TORAY INDUSTRIE/ADR’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Black Stone Minerals||$429.66 million||8.32||$157.18 million||$1.01||17.50|
|TORAY INDUSTRIE/ADR||$19.91 billion||0.59||$866.11 million||$1.08||13.37|
TORAY INDUSTRIE/ADR has higher revenue and earnings than Black Stone Minerals. TORAY INDUSTRIE/ADR 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
Black Stone Minerals has a beta of 0.38, meaning that its stock price is 62% less volatile than the S&P 500. Comparatively, TORAY INDUSTRIE/ADR has a beta of 0.18, meaning that its stock price is 82% less volatile than the S&P 500.
This table compares Black Stone Minerals and TORAY INDUSTRIE/ADR’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Black Stone Minerals||17.79%||9.32%||4.74%|
This is a breakdown of current recommendations and price targets for Black Stone Minerals and TORAY INDUSTRIE/ADR, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Black Stone Minerals||0||0||4||0||3.00|
Black Stone Minerals currently has a consensus target price of $19.67, indicating a potential upside of 11.30%. Given Black Stone Minerals’ higher possible upside, research analysts plainly believe Black Stone Minerals is more favorable than TORAY INDUSTRIE/ADR.
Insider & Institutional Ownership
13.2% of Black Stone Minerals shares are owned by institutional investors. Comparatively, 0.3% of TORAY INDUSTRIE/ADR shares are owned by institutional investors. 25.1% of Black Stone Minerals shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Black Stone Minerals pays an annual dividend of $1.35 per share and has a dividend yield of 7.6%. TORAY INDUSTRIE/ADR pays an annual dividend of $0.10 per share and has a dividend yield of 0.7%. Black Stone Minerals pays out 133.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. TORAY INDUSTRIE/ADR pays out 9.3% of its earnings in the form of a dividend. Black Stone Minerals has increased its dividend for 2 consecutive years. Black Stone Minerals is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Black Stone Minerals beats TORAY INDUSTRIE/ADR on 12 of the 16 factors compared between the two stocks.
Black Stone Minerals Company Profile
Black Stone Minerals, L.P. owns and manages oil and natural gas mineral interests in the United States. The company owns mineral interests in approximately 16.8 million acres, nonparticipating royalty interests in 1.9 million acres, and overriding royalty interests in 2.1 million acres located in 41 states and in 64 onshore basins in the continental United States. As of December 31, 2017, the company had a total estimated proved oil and natural gas reserves of 67,945 barrels of oil equivalent. Black Stone Minerals, L.P. was founded in 1876 and is based in Houston, Texas.
TORAY INDUSTRIE/ADR Company Profile
Toray Industries, Inc. manufactures, processes, and sells fibers and textiles, performance chemicals, carbon fiber composite materials, environment and engineering products, and life science products. The company offers filament yarns, staple fibers, and spun yarns, as well as woven and knitted fabrics of nylon, polyester, acrylics, and others; non-woven fabrics; ultra-microfiber non-woven fabric with suede-texture; and apparel products. It also provides nylon, ABS, PBT, PPS, other resins and molded products; polyolefin foam products; polyester, polyethylene, polypropylene, and other films; processed film products; raw materials for synthetic fibers and plastics; fine chemicals; electronic and information materials; and graphic materials. In addition, the company offers carbon fibers, carbon fiber composite materials, and molded products; analysis, physical evaluation, research, and other services; and pharmaceuticals, medical devices, etc. Further, it provides engineering services; condominiums; industrial equipment and machinery; IT-related equipment; water treatment membranes and related equipment; materials for housing, building, and civil engineering applications. As of March 31, 2018, Toray Industries, Inc. operated in 26 countries and regions, including Japan. The company was formerly known as Toyo Rayon Co., Ltd. and changed its name to Toray Industries, Inc. in 1970. Toray Industries, Inc. was founded in 1926 and is headquartered in Tokyo, Japan.
Receive News & Ratings for Black Stone Minerals Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Black Stone Minerals and related companies with MarketBeat.com's FREE daily email newsletter.