Comparing Barnwell Industries (NYSE:BRN) and Mexco Energy (NYSE:MXC)

Barnwell Industries (NYSE:BRNGet Rating) and Mexco Energy (NYSE:MXCGet Rating) 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, earnings, analyst recommendations, institutional ownership, profitability, valuation and risk.

Institutional and Insider Ownership

9.4% of Barnwell Industries shares are owned by institutional investors. Comparatively, 7.2% of Mexco Energy shares are owned by institutional investors. 12.9% of Barnwell Industries shares are owned by insiders. Comparatively, 48.9% of Mexco Energy shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Barnwell Industries and Mexco Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Barnwell Industries 19.31% 34.76% 16.38%
Mexco Energy 49.88% 33.01% 30.51%

Risk and Volatility

Barnwell Industries has a beta of 0.54, meaning that its share price is 46% less volatile than the S&P 500. Comparatively, Mexco Energy has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Barnwell Industries and Mexco Energy, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Barnwell Industries 0 0 0 0 N/A
Mexco Energy 0 0 0 0 N/A

Valuation and Earnings

This table compares Barnwell Industries and Mexco Energy’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Barnwell Industries $28.55 million 1.00 $5.51 million $0.56 5.11
Mexco Energy $6.59 million 4.45 $2.86 million $1.96 6.96

Barnwell Industries has higher revenue and earnings than Mexco Energy. Barnwell Industries is trading at a lower price-to-earnings ratio than Mexco Energy, indicating that it is currently the more affordable of the two stocks.

Summary

Mexco Energy beats Barnwell Industries on 7 of the 11 factors compared between the two stocks.

About Barnwell Industries

(Get Rating)

Barnwell Industries, Inc. engages in the oil and natural gas exploration, land investment, and contract drilling services. It operates through the following segments: Oil & Natural Gas, Land Investment, and Contract Drilling. The Oil & Natural Gas segment engages in the exploration, development, production and sale of oil and natural gas in Canada. The Land Investment segment invests in land interest in Hawaii. The Contract Drilling segment provides well drilling services and water pumping system installation and repairs in Hawaii. The company was founded by Morton H. Kinzler in 1956 and is headquartered in Honolulu, HI.

About Mexco Energy

(Get Rating)

Mexco Energy Corp. operates as an independent oil and gas company, which engages in the acquisition, exploration, development, and production of natural gas properties and crude oil. The firm operates its oil & gas exploration in the following areas: the Delaware Basin located in the Western portion of the Permian Basin, including Lea and Eddy Counties, New Mexico, and Loving County, Texas and the Midland Basin located in the Eastern portion of the Permian Basin, including Reagan, Upton, Midland, Martin, Howard, and Glasscock Counties, Texas. The company was founded in April 1972 and is headquartered in Midland, TX.

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