Analyzing VOC Energy Trust (VOC) and Royal Dutch Shell PLC (RDS.A)
VOC Energy Trust (NYSE: VOC) and Royal Dutch Shell PLC (NYSE:RDS.A) are both oils/energy companies, but which is the superior stock? We will contrast the two companies based on the strength of their dividends, earnings, valuation, risk, profitability, institutional ownership and analyst recommendations.
Valuation and Earnings
This table compares VOC Energy Trust and Royal Dutch Shell PLC’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|VOC Energy Trust||$8.25 million||6.96||$8.16 million||$0.48||7.04|
|Royal Dutch Shell PLC||N/A||N/A||N/A||$1.96||N/A|
VOC Energy Trust has higher revenue and earnings than Royal Dutch Shell PLC. Royal Dutch Shell PLC is trading at a lower price-to-earnings ratio than VOC Energy Trust, indicating that it is currently the more affordable of the two stocks.
This table compares VOC Energy Trust and Royal Dutch Shell PLC’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|VOC Energy Trust||90.57%||9.65%||9.65%|
|Royal Dutch Shell PLC||2.91%||6.04%||2.80%|
VOC Energy Trust pays an annual dividend of $0.44 per share and has a dividend yield of 13.0%. Royal Dutch Shell PLC pays an annual dividend of $3.20 per share. VOC Energy Trust pays out 91.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Royal Dutch Shell PLC pays out 163.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. VOC Energy Trust is clearly the better dividend stock, given its higher yield and lower payout ratio.
Institutional & Insider Ownership
7.8% of VOC Energy Trust shares are held by institutional investors. Comparatively, 6.3% of Royal Dutch Shell PLC shares are held by institutional investors. 1.0% of Royal Dutch Shell PLC shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
This is a breakdown of recent recommendations and price targets for VOC Energy Trust and Royal Dutch Shell PLC, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|VOC Energy Trust||0||0||0||0||N/A|
|Royal Dutch Shell PLC||2||3||11||0||2.56|
Royal Dutch Shell PLC has a consensus price target of $57.00, suggesting a potential upside of Infinity. Given Royal Dutch Shell PLC’s higher probable upside, analysts plainly believe Royal Dutch Shell PLC is more favorable than VOC Energy Trust.
Volatility & Risk
VOC Energy Trust has a beta of 0.84, suggesting that its stock price is 16% less volatile than the S&P 500. Comparatively, Royal Dutch Shell PLC has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.
VOC Energy Trust beats Royal Dutch Shell PLC on 7 of the 13 factors compared between the two stocks.
VOC Energy Trust Company Profile
VOC Energy Trust is a statutory trust formed by VOC Brazos Energy Partners, L.P. (VOC Brazos). The business and affairs of the Company are managed by The Bank of New York Mellon Trust Company, N.A., as trustee. The Company was created to acquire and hold the net profits interest for the benefit of its unitholders. VOC Brazos’ properties include interests in approximately 820 gross producing wells covering over 91,490 gross acres. VOC Brazos’ properties are developed properties located in oil and natural gas producing regions of Kansas and Texas. VOC Brazos’ fields in the Central Kansas Uplift include Fairport Field, Chase-Silica Field and Marcotte Field. VOC Brazos’ fields in Western Kansas include the Bindley, Moore-Johnson and Wesley fields. VOC Brazos’ fields in South Central Kansas include the Gerberding, Spivey Grabs and Alford fields. VOC Brazos’ proved reserved in Texas are located in the Central Texas and East Texas areas.
Royal Dutch Shell PLC Company Profile
The Royal Dutch Shell plc explores for crude oil and natural gas around the world, both in conventional fields and from sources, such as tight rock, shale and coal formations. The Company’s segments include Integrated Gas, Upstream, Downstream and Corporate. The Integrated Gas segment is engaged in the liquefaction and transportation of gas and the conversion of natural gas to liquids to provide fuels and other products, as well as projects with an integrated activity, ranging from producing to commercializing gas. The Upstream segment includes the operations of Upstream, which is engaged in the exploration for and extraction of crude oil, natural gas and natural gas liquids, and the marketing and transportation of oil and gas, and Oil Sands, which is engaged in the extraction of bitumen from mined oil sands and conversion into synthetic crude oil. The Downstream segment is engaged in oil products and chemicals manufacturing, and marketing activities.
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