Analyzing Pacific Coast Oil Trust (OTCMKTS:ROYTL) & Black Stone Minerals (NYSE:BSM)

Black Stone Minerals (NYSE:BSM) and Pacific Coast Oil Trust (OTCMKTS:ROYTL) are both oils/energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, dividends, institutional ownership, analyst recommendations and earnings.

Analyst Ratings

This is a summary of recent ratings and price targets for Black Stone Minerals and Pacific Coast Oil Trust, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Black Stone Minerals	0	2	1	0	2.33
Pacific Coast Oil Trust	0	0	0	0	N/A

Black Stone Minerals presently has a consensus target price of $19.33, suggesting a potential upside of 23.30%. Given Black Stone Minerals’ higher possible upside, equities analysts clearly believe Black Stone Minerals is more favorable than Pacific Coast Oil Trust.

Insider & Institutional Ownership

14.5% of Black Stone Minerals shares are owned by institutional investors. 19.6% of Black Stone Minerals shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

Black Stone Minerals has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500. Comparatively, Pacific Coast Oil Trust has a beta of 0.74, indicating that its stock price is 26% less volatile than the S&P 500.

Valuation & Earnings

This table compares Black Stone Minerals and Pacific Coast Oil Trust’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Black Stone Minerals	$592.22 million	5.57	$422.55 million	$1.54	10.18
Pacific Coast Oil Trust	N/A	N/A	N/A	N/A	N/A

Black Stone Minerals has higher revenue and earnings than Pacific Coast Oil Trust.

Profitability

This table compares Black Stone Minerals and Pacific Coast Oil Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Black Stone Minerals	66.29%	38.71%	27.84%
Pacific Coast Oil Trust	N/A	N/A	N/A

Summary

Black Stone Minerals beats Pacific Coast Oil Trust on 9 of the 9 factors compared between the two stocks.

About Black Stone Minerals

Black Stone Minerals, L.P., together with its subsidiaries, owns and manages oil and natural gas mineral interests. It owns mineral interests in approximately 16.8 million gross acres, nonparticipating royalty interests in 1.8 million gross acres, and overriding royalty interests in 1.6 million gross acres located in 41 states in the United States. The company was founded in 1876 and is based in Houston, Texas.

About Pacific Coast Oil Trust

Pacific Coast Oil Trust acquires and holds net profits and royalty interests in various oil and natural gas properties located in California. Its properties include Orcutt properties located in the Santa Maria Basin; and West Pico, East Coyote, and Sawtelle properties located in the Los Angeles Basin of California. Pacific Coast Oil Trust was founded in 2012 and is based in Houston, Texas.