CVR Energy (NYSE:CVI) vs. Black Stone Minerals (NYSE:BSM) Head-To-Head Comparison

Black Stone Minerals (NYSE:BSM) and CVR Energy (NYSE:CVI) are both mid-cap energy companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, risk, profitability, institutional ownership, valuation, earnings and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Black Stone Minerals	57.23%	36.99%	21.91%
CVR Energy	2.70%	25.52%	5.65%

Insider & Institutional Ownership

14.5% of Black Stone Minerals shares are owned by institutional investors. Comparatively, 98.9% of CVR Energy shares are owned by institutional investors. 17.7% of Black Stone Minerals shares are owned by insiders. Comparatively, 70.8% of CVR Energy shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Black Stone Minerals and CVR Energy”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	$469.92 million	6.38	$299.93 million	$1.02	13.81
CVR Energy	$7.16 billion	0.58	$27.00 million	$2.63	15.62

Black Stone Minerals has higher earnings, but lower revenue than CVR Energy. Black Stone Minerals is trading at a lower price-to-earnings ratio than CVR Energy, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Black Stone Minerals has a beta of 0.14, meaning that its share price is 86% less volatile than the S&P 500. Comparatively, CVR Energy has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings for Black Stone Minerals and CVR Energy, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Black Stone Minerals	1	3	0	0	1.75
CVR Energy	4	3	0	1	1.75

Black Stone Minerals currently has a consensus target price of $15.00, indicating a potential upside of 6.45%. CVR Energy has a consensus target price of $45.75, indicating a potential upside of 11.40%. Given CVR Energy’s higher possible upside, analysts clearly believe CVR Energy is more favorable than Black Stone Minerals.

Dividends

Black Stone Minerals pays an annual dividend of $1.40 per share and has a dividend yield of 9.9%. CVR Energy pays an annual dividend of $0.40 per share and has a dividend yield of 1.0%. Black Stone Minerals pays out 137.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. CVR Energy pays out 15.2% of its earnings in the form of a dividend. CVR Energy has increased its dividend for 1 consecutive years.

Summary

CVR Energy beats Black Stone Minerals on 10 of the 16 factors compared between the two stocks.

About Black Stone Minerals

Black Stone Minerals, L.P. is a Houston-based owner of oil and natural gas mineral and royalty interests. The company leases these interests to exploration and production companies, which develop and operate the properties. Black Stone Minerals generally does not drill wells itself. Instead, it earns royalties and other payments tied to production from wells on its properties, including oil, natural gas and natural gas liquids. Its portfolio spans multiple onshore oil and gas regions across the United States, including areas in the Permian Basin, Haynesville shale and Eagle Ford.

About CVR Energy

CVR Energy, Inc. is a diversified energy company whose principal businesses are petroleum refining and nitrogen fertilizer production. Through its subsidiaries, the company processes crude oil and markets refined fuels and other petroleum products. Its refining operations include facilities in Coffeyville, Kansas, and Wynnewood, Oklahoma. Products include gasoline, diesel fuel, jet fuel and asphalt, serving customers primarily in the central United States. CVR Energy also owns a majority interest in CVR Partners, LP, which produces nitrogen fertilizers, including ammonia and urea ammonium nitrate (UAN), at facilities in Coffeyville, Kansas, and East Dubuque, Illinois.