Oklo (NYSE:OKLO – Get Free Report) and Black Hills (NYSE:BKH – Get Free Report) are both mid-cap oils/energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, risk, valuation, analyst recommendations and institutional ownership.
Profitability
This table compares Oklo and Black Hills’ net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Oklo | N/A | -32.11% | -13.72% |
Black Hills | 12.00% | 7.43% | 2.60% |
Risk & Volatility
Oklo has a beta of -0.51, indicating that its share price is 151% less volatile than the S&P 500. Comparatively, Black Hills has a beta of 0.72, indicating that its share price is 28% less volatile than the S&P 500.
Valuation & Earnings
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Oklo | N/A | N/A | $11.87 million | N/A | N/A |
Black Hills | $2.33 billion | 1.83 | $262.20 million | $3.72 | 16.03 |
Black Hills has higher revenue and earnings than Oklo.
Insider and Institutional Ownership
85.0% of Oklo shares are held by institutional investors. Comparatively, 86.7% of Black Hills shares are held by institutional investors. 21.8% of Oklo shares are held by company insiders. Comparatively, 0.6% of Black Hills shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Analyst Ratings
This is a summary of recent ratings and price targets for Oklo and Black Hills, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Oklo | 0 | 2 | 2 | 0 | 2.50 |
Black Hills | 0 | 4 | 0 | 0 | 2.00 |
Oklo presently has a consensus target price of $22.33, suggesting a potential downside of 14.39%. Black Hills has a consensus target price of $61.25, suggesting a potential upside of 2.71%. Given Black Hills’ higher possible upside, analysts clearly believe Black Hills is more favorable than Oklo.
Summary
Black Hills beats Oklo on 8 of the 11 factors compared between the two stocks.
About Oklo
Oklo Inc. designs and develops fission power plants to provide reliable and commercial-scale energy to customers in the United States. It also provides used nuclear fuel recycling services. The company was founded in 2013 and is based in Santa Clara, California.
About Black Hills
Black Hills Corporation, through its subsidiaries, operates as an electric and natural gas utility company in the United States. The company operates in two segments: Electric Utilities and Gas Utilities. The Electric Utilities segment generates, transmits, and distributes electricity to approximately 222,000 electric utility customers in Colorado, Montana, South Dakota, and Wyoming; and owns and operates 1,394 megawatts of generation capacity and 9,106 miles of electric transmission and distribution lines. The Gas Utilities segment distributes natural gas to approximately 1,116,000 natural gas utility customers in Arkansas, Colorado, Iowa, Kansas, Nebraska, and Wyoming; owns and operates 4,663 miles of intrastate gas transmission pipelines; 42,514 miles of gas distribution mains and service lines; seven natural gas storage sites; and approximately 50,000 horsepower of compression and 516 miles of gathering lines. It also constructs and maintains customer owned gas infrastructure facilities for gas transportation customers; and provides appliance repair services to residential utility customers, as well as electrical system construction services to large industrial customers. In addition, the company produces electric power through wind, natural gas, and coal-fired generating plants; and coal at its coal mine located near Gillette, Wyoming. Black Hills Corporation was incorporated in 1941 and is headquartered in Rapid City, South Dakota.
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