Critical Review: Natural Resource Partners (NYSE:NRP) & XCF Global Capital (NASDAQ:SAFX)

XCF Global Capital (NASDAQ:SAFX) and Natural Resource Partners (NYSE:NRP) are both small-cap energy companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, analyst recommendations, profitability, institutional ownership, dividends and earnings.

Volatility and Risk

XCF Global Capital has a beta of -0.19, meaning that its share price is 119% less volatile than the S&P 500. Comparatively, Natural Resource Partners has a beta of 0.1, meaning that its share price is 90% less volatile than the S&P 500.

Valuation and Earnings

This table compares XCF Global Capital and Natural Resource Partners”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
XCF Global Capital	$15.28 million	1.94	$74.02 million	($0.19)	-0.38
Natural Resource Partners	$207.28 million	7.54	$136.37 million	$7.84	15.04

Natural Resource Partners has higher revenue and earnings than XCF Global Capital. XCF Global Capital is trading at a lower price-to-earnings ratio than Natural Resource Partners, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares XCF Global Capital and Natural Resource Partners’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
XCF Global Capital	-397.43%	-230.36%	-14.70%
Natural Resource Partners	56.03%	15.71%	13.21%

Analyst Recommendations

This is a summary of current ratings for XCF Global Capital and Natural Resource Partners, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
XCF Global Capital	1	2	1	0	2.00
Natural Resource Partners	0	0	1	0	3.00

XCF Global Capital presently has a consensus target price of $0.70, suggesting a potential upside of 880.39%. Given XCF Global Capital’s higher possible upside, analysts clearly believe XCF Global Capital is more favorable than Natural Resource Partners.

Institutional and Insider Ownership

52.3% of XCF Global Capital shares are owned by institutional investors. Comparatively, 31.8% of Natural Resource Partners shares are owned by institutional investors. 0.1% of XCF Global Capital shares are owned by company insiders. Comparatively, 35.3% of Natural Resource Partners shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Natural Resource Partners beats XCF Global Capital on 11 of the 13 factors compared between the two stocks.

About XCF Global Capital

XCF Global Capital Inc. is a player in decarbonizing the aviation industry through Sustainable Aviation Fuel. XCF Global Capital Inc., formerly known as Focus Impact BH3 Acquisition Company, is based in RENO, NV.

About Natural Resource Partners

Natural Resource Partners L.P., together with its subsidiaries, owns, manages, and leases a portfolio of mineral properties in the United States. It operates in two segments, Mineral Rights and Soda Ash. The company owns interests in coal, soda ash, trona, and other natural resources. Its coal reserves are primarily located in the Appalachia Basin, the Illinois Basin, and the Northern Powder River Basin in the United States; industrial minerals and aggregates properties located in the United States; and oil and gas properties located in Louisiana. The company leases a portion of its reserves in exchange for royalty payments; and owns and leases transportation and processing infrastructure related to coal properties. NRP (GP) LP serves as the general partner of the company. Natural Resource Partners L.P. was incorporated in 2002 and is headquartered in Houston, Texas.