Analyzing Groove Botanicals (OTCMKTS:GRVE) and Dorchester Minerals (NASDAQ:DMLP)

Groove Botanicals (OTCMKTS:GRVE) and Dorchester Minerals (NASDAQ:DMLP) are both small-cap oils/energy companies, but which is the better stock? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, valuation, profitability, dividends, risk and earnings.

Volatility and Risk

Groove Botanicals has a beta of 1.57, suggesting that its stock price is 57% more volatile than the S&P 500. Comparatively, Dorchester Minerals has a beta of 1.1, suggesting that its stock price is 10% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and target prices for Groove Botanicals and Dorchester Minerals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Groove Botanicals	0	0	0	0	N/A
Dorchester Minerals	0	0	0	0	N/A

Earnings and Valuation

This table compares Groove Botanicals and Dorchester Minerals”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Groove Botanicals	N/A	N/A	-$200,000.00	N/A	N/A
Dorchester Minerals	$161.35 million	8.17	$110.39 million	$2.57	12.80

Dorchester Minerals has higher revenue and earnings than Groove Botanicals.

Profitability

This table compares Groove Botanicals and Dorchester Minerals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Groove Botanicals	N/A	N/A	-9,886.49%
Dorchester Minerals	66.16%	59.40%	57.38%

Insider and Institutional Ownership

19.2% of Dorchester Minerals shares are held by institutional investors. 55.1% of Groove Botanicals shares are held by insiders. Comparatively, 7.1% of Dorchester Minerals shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Dorchester Minerals beats Groove Botanicals on 6 of the 8 factors compared between the two stocks.

About Groove Botanicals

Groove Botanicals, Inc. operates as an independent oil and gas producer. It also focuses on assembling a portfolio of EV battery technologies. The company was formerly known as Avalon Oil & Gas, Inc. and changed its name to Groove Botanicals, Inc. in May 2018. Groove Botanicals, Inc. was incorporated in 1991 and is headquartered in Minneapolis, Minnesota.

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.