Financial Review: SandRidge Energy (NYSE:SD) and Dynagas LNG Partners (NYSE:DLNG)

SandRidge Energy (NYSE:SD) and Dynagas LNG Partners (NYSE:DLNG) are both small-cap energy companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, risk, analyst recommendations, profitability, valuation, dividends and institutional ownership.

Dividends

SandRidge Energy pays an annual dividend of $0.52 per share and has a dividend yield of 3.7%. Dynagas LNG Partners pays an annual dividend of $0.20 per share and has a dividend yield of 5.5%. SandRidge Energy pays out 23.2% of its earnings in the form of a dividend. Dynagas LNG Partners pays out 11.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. SandRidge Energy has raised its dividend for 2 consecutive years. Dynagas LNG Partners is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares SandRidge Energy and Dynagas LNG Partners’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SandRidge Energy	46.06%	13.62%	10.93%
Dynagas LNG Partners	42.33%	13.05%	6.74%

Earnings and Valuation

This table compares SandRidge Energy and Dynagas LNG Partners”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SandRidge Energy	$156.36 million	3.34	$70.20 million	$2.24	6.29
Dynagas LNG Partners	$156.62 million	0.84	$61.60 million	$1.68	2.16

SandRidge Energy has higher earnings, but lower revenue than Dynagas LNG Partners. Dynagas LNG Partners is trading at a lower price-to-earnings ratio than SandRidge Energy, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings for SandRidge Energy and Dynagas LNG Partners, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SandRidge Energy	0	2	0	0	2.00
Dynagas LNG Partners	0	1	0	0	2.00

Institutional & Insider Ownership

61.8% of SandRidge Energy shares are owned by institutional investors. 1.6% of SandRidge Energy 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.

Risk & Volatility

SandRidge Energy has a beta of 0.48, meaning that its stock price is 52% less volatile than the S&P 500. Comparatively, Dynagas LNG Partners has a beta of 0.54, meaning that its stock price is 46% less volatile than the S&P 500.

Summary

SandRidge Energy beats Dynagas LNG Partners on 10 of the 14 factors compared between the two stocks.

About SandRidge Energy

SandRidge Energy, Inc. engages in the acquisition, development, and production of oil, natural gas, and natural gas liquids in the United States Mid-Continent. The company was incorporated in 2006 and is headquartered in Oklahoma City, Oklahoma.

About Dynagas LNG Partners

Dynagas LNG Partners LP, through its subsidiaries, operates in the seaborne transportation industry in Greece and internationally. The company owns and operates liquefied natural gas (LNG) carriers. Its fleet consists of six LNG carriers with an aggregate carrying capacity of approximately 914,000 cubic meters. Dynagas GP LLC serves as the general partner of Dynagas LNG Partners LP. The company was incorporated in 2013 and is headquartered in Athens, Greece.