Head-To-Head Analysis: Pacific Coast Oil Trust (OTCMKTS:ROYTL) versus Kimbell Royalty (NYSE:KRP)

Pacific Coast Oil Trust (OTCMKTS:ROYTL) and Kimbell Royalty (NYSE:KRP) are both energy companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, earnings, dividends, institutional ownership, risk and profitability.

Insider & Institutional Ownership

25.8% of Kimbell Royalty shares are owned by institutional investors. 5.6% of Kimbell Royalty shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Pacific Coast Oil Trust and Kimbell Royalty’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pacific Coast Oil Trust	N/A	N/A	N/A
Kimbell Royalty	10.66%	12.51%	6.28%

Analyst Recommendations

This is a breakdown of recent ratings for Pacific Coast Oil Trust and Kimbell Royalty, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pacific Coast Oil Trust	0	0	0	0	0.00
Kimbell Royalty	2	4	0	1	2.00

Kimbell Royalty has a consensus target price of $17.40, indicating a potential upside of 51.08%. Given Kimbell Royalty’s stronger consensus rating and higher possible upside, analysts clearly believe Kimbell Royalty is more favorable than Pacific Coast Oil Trust.

Earnings and Valuation

This table compares Pacific Coast Oil Trust and Kimbell Royalty”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pacific Coast Oil Trust	N/A	N/A	N/A	N/A	N/A
Kimbell Royalty	$309.31 million	4.02	$12.32 million	($0.07)	-164.53

Kimbell Royalty has higher revenue and earnings than Pacific Coast Oil Trust.

Risk and Volatility

Pacific Coast Oil Trust has a beta of 0.35, indicating that its stock price is 65% less volatile than the S&P 500. Comparatively, Kimbell Royalty has a beta of 0.32, indicating that its stock price is 68% less volatile than the S&P 500.

Summary

Kimbell Royalty beats Pacific Coast Oil Trust on 9 of the 10 factors compared between the two stocks.

About Pacific Coast Oil Trust

Pacific Coast Oil Trust acquires and holds net profits and royalty interests in various oil and natural gas properties located in California. Its properties include Orcutt properties located in the Santa Maria Basin; and West Pico, East Coyote, and Sawtelle properties located in the Los Angeles Basin of California. Pacific Coast Oil Trust was founded in 2012 and is based in Houston, Texas.

About Kimbell Royalty

Kimbell Royalty Partners, LP, together with its subsidiaries, engages in acquiring and owning mineral and royalty interests in oil and natural gas properties in the United States. It serves as the general partner of the company. The company was incorporated in 2015 and is based in Fort Worth, Texas.