Memorial Production Partners (NASDAQ: MEMP) and San Juan Basin Royalty Trust (NYSE:SJT) are both small-cap energy companies, but which is the better business? We will compare the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, dividends, analyst recommendations and risk.
This is a breakdown of current ratings and target prices for Memorial Production Partners and San Juan Basin Royalty Trust, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Memorial Production Partners||0||0||0||0||N/A|
|San Juan Basin Royalty Trust||0||0||0||0||N/A|
This table compares Memorial Production Partners and San Juan Basin Royalty Trust’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Memorial Production Partners||-395.31%||-496.55%||-58.07%|
|San Juan Basin Royalty Trust||94.95%||499.42%||284.57%|
Valuation and Earnings
This table compares Memorial Production Partners and San Juan Basin Royalty Trust’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Memorial Production Partners||N/A||N/A||N/A||($6.48)||-0.02|
|San Juan Basin Royalty Trust||$17.53 million||23.85||$13.92 million||$0.78||11.50|
San Juan Basin Royalty Trust has higher revenue and earnings than Memorial Production Partners. Memorial Production Partners is trading at a lower price-to-earnings ratio than San Juan Basin Royalty Trust, indicating that it is currently the more affordable of the two stocks.
Memorial Production Partners pays an annual dividend of $0.06 per share and has a dividend yield of 46.2%. San Juan Basin Royalty Trust pays an annual dividend of $0.43 per share and has a dividend yield of 4.8%. Memorial Production Partners pays out -0.9% of its earnings in the form of a dividend. San Juan Basin Royalty Trust pays out 55.1% 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. Memorial Production Partners has increased its dividend for 4 consecutive years. Memorial Production Partners is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Insider and Institutional Ownership
5.5% of Memorial Production Partners shares are owned by institutional investors. Comparatively, 24.6% of San Juan Basin Royalty Trust shares are owned by institutional investors. 1.5% of Memorial Production Partners shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
San Juan Basin Royalty Trust beats Memorial Production Partners on 7 of the 11 factors compared between the two stocks.
Memorial Production Partners Company Profile
Memorial Production Partners LP (the Partnership) owns, acquires and exploits oil and natural gas properties in North America. The Partnership is owned by its limited partners and general partner. Its general partner is responsible for managing all of the Partnership’s operations and activities. The Partnership operates in the acquisition, exploitation, development and production of oil and natural gas properties segment. Its business activities are conducted through Memorial Production Operating LLC (OLLC) and its wholly owned subsidiaries. Its assets consist primarily of producing oil and natural gas properties, and are located in East Texas/Louisiana, Rockies, Offshore Southern California, Permian Basin and South Texas. Most of its oil and natural gas properties are located in oil and natural gas reservoirs with geologic characteristics and production profiles and capital requirements.
San Juan Basin Royalty Trust Company Profile
San Juan Basin Royalty Trust is an express trust. The principal asset of the Trust is Royalty. Its Royalty is carved from working, royalty and other oil and natural gas interests owned by Southland Royalty Company, the predecessor to Burlington Resources Oil & Gas Company LP (Burlington), in properties located in the San Juan Basin of northwestern New Mexico (Subject Interests). The Trustee of the Trust is Compass Bank. The function of the Trustee is to collect the net proceeds attributable to the Royalty, to pay all expenses and charges of the Trust and distribute the remaining available income to the Unit Holders. The Trust does not operate the Subject Interests and is not empowered to carry on any business activity. It is a widely held fixed investment trust (WHFIT) and is classified as a non-mortgage widely held fixed investment trust (NMWHFIT) for federal income tax purposes. As of December 31, 2016, 99% of the Trust’s estimated proved reserves consisted of natural gas reserves.
Receive News & Ratings for Memorial Production Partners Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Memorial Production Partners and related companies with MarketBeat.com's FREE daily email newsletter.