Critical Review: Blue Dolphin Energy (OTCMKTS:BDCO) and Granite Ridge Resources (NYSE:GRNT)

Granite Ridge Resources (NYSE:GRNT) and Blue Dolphin Energy (OTCMKTS:BDCO) are both small-cap energy companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, earnings, institutional ownership, valuation, dividends and profitability.

Risk & Volatility

Granite Ridge Resources has a beta of 0.35, meaning that its share price is 65% less volatile than the S&P 500. Comparatively, Blue Dolphin Energy has a beta of 0.47, meaning that its share price is 53% less volatile than the S&P 500.

Insider and Institutional Ownership

31.6% of Granite Ridge Resources shares are owned by institutional investors. 8.5% of Granite Ridge Resources shares are owned by company insiders. Comparatively, 88.3% of Blue Dolphin Energy shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Granite Ridge Resources and Blue Dolphin Energy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Granite Ridge Resources	7.47%	13.09%	7.89%
Blue Dolphin Energy	-2.82%	-24.22%	-7.98%

Valuation & Earnings

This table compares Granite Ridge Resources 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
Granite Ridge Resources	$380.03 million	1.80	$18.76 million	$0.24	21.71
Blue Dolphin Energy	$317.52 million	0.06	-$8.64 million	($0.57)	-2.25

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

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Granite Ridge Resources and Blue Dolphin Energy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Granite Ridge Resources	0	2	1	0	2.33
Blue Dolphin Energy	0	0	0	0	0.00

Granite Ridge Resources presently has a consensus price target of $7.50, suggesting a potential upside of 43.95%. Given Granite Ridge Resources’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Granite Ridge Resources is more favorable than Blue Dolphin Energy.

Summary

Granite Ridge Resources beats Blue Dolphin Energy on 12 of the 14 factors compared between the two stocks.

About Granite Ridge Resources

Granite Ridge Resources, Inc. operates as a non-operated oil and gas exploration and production company. It owns a portfolio of wells and acreage across the Permian and other unconventional basins in the United States. Granite Ridge Resources, Inc. is based in Dallas, Texas.

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.