Head-To-Head Contrast: Cross Timbers Royalty Trust (NYSE:CRT) and Dorchester Minerals (NASDAQ:DMLP)

Volatility & Risk

Cross Timbers Royalty Trust has a beta of 0.11, meaning that its share price is 89% less volatile than the S&P 500. Comparatively, Dorchester Minerals has a beta of 0.59, meaning that its share price is 41% less volatile than the S&P 500.

Profitability

This table compares Cross Timbers Royalty Trust and Dorchester Minerals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cross Timbers Royalty Trust	87.50%	243.41%	150.00%
Dorchester Minerals	52.49%	28.67%	28.16%

Valuation and Earnings

This table compares Cross Timbers Royalty Trust and Dorchester Minerals”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cross Timbers Royalty Trust	$6.62 million	8.79	$6.54 million	$0.99	9.80
Dorchester Minerals	$161.52 million	8.18	$89.20 million	$2.04	13.69

Dorchester Minerals has higher revenue and earnings than Cross Timbers Royalty Trust. Cross Timbers Royalty Trust is trading at a lower price-to-earnings ratio than Dorchester Minerals, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

9.7% of Cross Timbers Royalty Trust shares are owned by institutional investors. Comparatively, 19.2% of Dorchester Minerals shares are owned by institutional investors. 9.4% of Cross Timbers Royalty Trust shares are owned by insiders. Comparatively, 5.9% of Dorchester Minerals shares are owned 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.

Dividends

Cross Timbers Royalty Trust pays an annual dividend of $0.43 per share and has a dividend yield of 4.4%. Dorchester Minerals pays an annual dividend of $2.90 per share and has a dividend yield of 10.4%. Cross Timbers Royalty Trust pays out 43.4% of its earnings in the form of a dividend. Dorchester Minerals pays out 142.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Summary

Dorchester Minerals beats Cross Timbers Royalty Trust on 7 of the 13 factors compared between the two stocks.

About Cross Timbers Royalty Trust

Cross Timbers Royalty Trust operates as an express trust in the United States. It holds 90% net profits interests in certain producing and nonproducing royalty and overriding royalty interest properties in Texas, Oklahoma, and New Mexico; and 75% net profits working interest in four properties in Texas and three properties in Oklahoma. The company was founded in 1991 and is based in Dallas, Texas.

About Dorchester Minerals

Dorchester Minerals, L.P. engages in the acquisition, ownership, and administration of royalty properties in the United States. Its royalty properties include producing and nonproducing mineral, royalty, overriding royalty, net profits, and leasehold interests in 593 counties and parishes in 28 states; and net profits interests represent net profits overriding royalty interests in various properties owned by the operating partnership. Dorchester Minerals Management LP serves as the general partner of Dorchester Minerals, L.P. The company was founded in 1982 and is based in Dallas, Texas.