Financial Analysis: Blue Dolphin Energy (OTCMKTS:BDCO) versus Chesapeake Granite Wash Trust (OTCMKTS:CHKR)

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

Profitability

This table compares Blue Dolphin Energy and Chesapeake Granite Wash Trust’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Blue Dolphin Energy	4.34%	39.12%	15.23%
Chesapeake Granite Wash Trust	61.39%	41.19%	41.19%

Analyst Ratings

This is a summary of current recommendations and price targets for Blue Dolphin Energy and Chesapeake Granite Wash Trust, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Blue Dolphin Energy	0	0	0	0	N/A
Chesapeake Granite Wash Trust	0	0	0	0	N/A

Volatility & Risk

Blue Dolphin Energy has a beta of -0.02, indicating that its share price is 102% less volatile than the S&P 500. Comparatively, Chesapeake Granite Wash Trust has a beta of 0.44, indicating that its share price is 56% less volatile than the S&P 500.

Valuation & Earnings

This table compares Blue Dolphin Energy and Chesapeake Granite Wash Trust”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Blue Dolphin Energy	$396.05 million	0.15	$31.01 million	$1.40	2.93
Chesapeake Granite Wash Trust	$10.69 million	1.75	$8.05 million	$0.13	3.08

Blue Dolphin Energy has higher revenue and earnings than Chesapeake Granite Wash Trust. Blue Dolphin Energy is trading at a lower price-to-earnings ratio than Chesapeake Granite Wash Trust, indicating that it is currently the more affordable of the two stocks.

Summary

Chesapeake Granite Wash Trust beats Blue Dolphin Energy on 6 of the 9 factors compared between the two stocks.

About Blue Dolphin Energy

Blue Dolphin Energy Company, an independent downstream energy company, engages in the refining and marketing of petroleum products in the United States. It operates through two segments, Refinery Operations, and Tolling and Terminaling. The company produces finished products, including jet fuel, as well as various intermediate products, such as naphtha, heavy oil mud blendstock, and atmospheric gas oil; and conducts tolling and terminaling services at the Nixon facility. It also provides storage tank rentals and ancillary services. The company was incorporated in 1986 and is headquartered in Houston, Texas. Blue Dolphin Energy Company is a subsidiary of Lazarus Energy Holdings, LLC.

About Chesapeake Granite Wash Trust

Chesapeake Granite Wash Trust owns royalty interests in oil, natural gas liquids, and natural gas properties located in the Colony Granite Wash play in Washita County in the Anadarko Basin of Western Oklahoma. It has royalty interests in 69 producing wells and 118 development wells, and in approximately 26,400 net acres of area. The company was incorporated in 2011 and is based in Houston, Texas.