Contrasting Berry Petroleum (NASDAQ:BRY) and Blue Dolphin Energy (NASDAQ:BDCO)

Berry Petroleum (NASDAQ:BRY) and Blue Dolphin Energy (OTCMKTS:BDCO) are both small-cap oils/energy companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, earnings, risk and analyst recommendations.

Profitability

This table compares Berry Petroleum and Blue Dolphin Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Berry Petroleum 24.87% 12.64% 7.39%
Blue Dolphin Energy -1.46% -8.96% -6.67%

Valuation & Earnings

This table compares Berry Petroleum and Blue Dolphin Energy’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Berry Petroleum $586.56 million 1.36 $147.10 million $1.26 7.84
Blue Dolphin Energy $340.76 million 0.04 -$520,000.00 N/A N/A

Berry Petroleum has higher revenue and earnings than Blue Dolphin Energy.

Institutional & Insider Ownership

98.6% of Berry Petroleum shares are held by institutional investors. 0.6% of Berry Petroleum shares are held by insiders. Comparatively, 81.8% of Blue Dolphin Energy shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Volatility and Risk

Berry Petroleum has a beta of 2.48, meaning that its share price is 148% more volatile than the S&P 500. Comparatively, Blue Dolphin Energy has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Berry Petroleum and Blue Dolphin Energy, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Berry Petroleum 0 1 4 0 2.80
Blue Dolphin Energy 0 0 0 0 N/A

Berry Petroleum presently has a consensus price target of $13.00, indicating a potential upside of 31.58%. Given Berry Petroleum’s higher possible upside, equities research analysts plainly believe Berry Petroleum is more favorable than Blue Dolphin Energy.

Dividends

Berry Petroleum pays an annual dividend of $0.48 per share and has a dividend yield of 4.9%. Blue Dolphin Energy does not pay a dividend. Berry Petroleum pays out 38.1% of its earnings in the form of a dividend.

Summary

Berry Petroleum beats Blue Dolphin Energy on 11 of the 13 factors compared between the two stocks.

Berry Petroleum Company Profile

Berry Petroleum Company, LLC., formerly Berry Petroleum Company, is an independent energy company. The Company is engaged in the production, development, exploitation, and acquisition of oil and natural gas. The Company’s principal reserves and producing properties are located in California (South Midway-Sunset (SMWSS)-Steam Floods, North Midway-Sunset (NMWSS)-Diatomite, NMWSS-New Steam Floods, Texas (Permian and E. Texas), Utah (Uinta) and Colorado (Piceance). The Company’s operations are conducted in the continental United States. In December 2013, Linn Energy LLC and Linn Co, LLC (Linn Co) announced the completion of the merger between LinnCo and Berry Petroleum Company (Berry), where LinnCo had acquired all of Berry’s interest.

Blue Dolphin Energy Company Profile

Blue Dolphin Energy Company operates as an independent refiner and marketer of petroleum products in the United States. The company produces finished products, including jet fuel, as well as intermediate products, such as naphtha, liquefied petroleum gas, atmospheric gas oil, and heavy oil-based mud blendstock; and conducts petroleum storage and terminaling operations under third party lease agreements at the Nixon facility. It also provides pipeline transportation services comprising gathering and transportation of oil and natural gas for producers/shippers operating offshore in the Gulf of Mexico. Blue Dolphin Energy Company holds leasehold interests in the High Island Block 115; Galveston Area Block 321; and High Island Block 37. The company was founded in 1986 and is headquartered in Houston, Texas. Blue Dolphin Energy Company is a subsidiary of Lazarus Energy Holdings, LLC.

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