Falcon Minerals (FLMN) and Its Competitors Critical Contrast

Falcon Minerals (NASDAQ: FLMN) is one of 179 publicly-traded companies in the “Crude petroleum & natural gas” industry, but how does it contrast to its peers? We will compare Falcon Minerals to related companies based on the strength of its valuation, earnings, profitability, dividends, institutional ownership, risk and analyst recommendations.

Dividends

Falcon Minerals pays an annual dividend of $0.70 per share and has a dividend yield of 8.9%. Falcon Minerals pays out 350.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Crude petroleum & natural gas” companies pay a dividend yield of 2.5% and pay out 41.5% of their earnings in the form of a dividend.

Insider and Institutional Ownership

65.4% of Falcon Minerals shares are held by institutional investors. Comparatively, 57.4% of shares of all “Crude petroleum & natural gas” companies are held by institutional investors. 8.6% of Falcon Minerals shares are held by insiders. Comparatively, 10.7% of shares of all “Crude petroleum & natural gas” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations for Falcon Minerals and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Falcon Minerals 0 2 4 0 2.67
Falcon Minerals Competitors 2074 8396 12058 397 2.47

Falcon Minerals presently has a consensus price target of $10.42, suggesting a potential upside of 31.86%. As a group, “Crude petroleum & natural gas” companies have a potential upside of 44.36%. Given Falcon Minerals’ peers higher possible upside, analysts plainly believe Falcon Minerals has less favorable growth aspects than its peers.

Profitability

This table compares Falcon Minerals and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Falcon Minerals N/A 12.62% 8.68%
Falcon Minerals Competitors -12.94% 0.28% 5.46%

Volatility & Risk

Falcon Minerals has a beta of -0.15, meaning that its stock price is 115% less volatile than the S&P 500. Comparatively, Falcon Minerals’ peers have a beta of 1.37, meaning that their average stock price is 37% more volatile than the S&P 500.

Valuation and Earnings

This table compares Falcon Minerals and its peers revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Falcon Minerals $97.20 million $90.13 million 39.50
Falcon Minerals Competitors $11.12 billion $803.30 million 12.30

Falcon Minerals’ peers have higher revenue and earnings than Falcon Minerals. Falcon Minerals is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Summary

Falcon Minerals beats its peers on 8 of the 15 factors compared.

Falcon Minerals Company Profile

Falcon Minerals Corporation acquires and owns mineral, royalty, and over-riding royalty interests in oil and natural gas properties in North America. It owns interests covering approximately 256,000 gross unit acres in the Eagle Ford Shale and Austin Chalk in Karnes, DeWitt, and Gonzales Counties in Texas, as well as approximately 68,000 gross unit acres in Pennsylvania, Ohio, and West Virginia that is prospective for the Marcellus Shale. The company is based in Philadelphia, Pennsylvania.

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