Reviewing Pacific Coast Oil Trust (ROYT) & EXCO Resources (XCO)
Pacific Coast Oil Trust (NYSE: ROYT) and EXCO Resources (NYSE:XCO) are both small-cap oils/energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, earnings, dividends, institutional ownership, valuation, risk and profitability.
Risk and Volatility
Pacific Coast Oil Trust has a beta of 2.16, suggesting that its share price is 116% more volatile than the S&P 500. Comparatively, EXCO Resources has a beta of 0.38, suggesting that its share price is 62% less volatile than the S&P 500.
Institutional & Insider Ownership
16.4% of Pacific Coast Oil Trust shares are owned by institutional investors. Comparatively, 56.3% of EXCO Resources shares are owned by institutional investors. 1.4% of EXCO Resources shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
This table compares Pacific Coast Oil Trust and EXCO Resources’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Pacific Coast Oil Trust||6.02%||1.44%||1.43%|
Pacific Coast Oil Trust pays an annual dividend of $0.15 per share and has a dividend yield of 8.5%. EXCO Resources does not pay a dividend. Pacific Coast Oil Trust pays out 187.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. EXCO Resources has raised its dividend for 4 consecutive years.
This is a breakdown of recent recommendations and price targets for Pacific Coast Oil Trust and EXCO Resources, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Pacific Coast Oil Trust||0||1||0||0||2.00|
Pacific Coast Oil Trust currently has a consensus target price of $1.50, indicating a potential downside of 15.25%. Given Pacific Coast Oil Trust’s higher probable upside, equities analysts clearly believe Pacific Coast Oil Trust is more favorable than EXCO Resources.
Valuation and Earnings
This table compares Pacific Coast Oil Trust and EXCO Resources’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Pacific Coast Oil Trust||$32.19 million||2.12||$220,000.00||$0.08||22.13|
|EXCO Resources||$271.00 million||0.06||-$225.25 million||$3.91||0.18|
Pacific Coast Oil Trust has higher earnings, but lower revenue than EXCO Resources. EXCO Resources is trading at a lower price-to-earnings ratio than Pacific Coast Oil Trust, indicating that it is currently the more affordable of the two stocks.
Pacific Coast Oil Trust Company Profile
Pacific Coast Oil Trust is a statutory trust formed by Pacific Coast Energy Company LP (PCEC). The Trust is engaged in acquiring and holding net profits and royalty interests in certain oil and natural gas properties located in California for the benefit of the Trust unitholders. The Underlying Properties consist of producing and non-producing interests in oil units, wells and lands located onshore in California in the Santa Maria Basin, which contains PCEC’s Orcutt properties, and the Los Angeles Basin, which contains PCEC’s West Pico, East Coyote and Sawtelle properties. The Underlying Properties consist of the proved developed reserves referred to as the Developed Properties and all other development potential on the Underlying Properties, which are referred to as the Remaining Properties. Production from the Developed Properties attributable to the Trust is produced from wells that, because they have already been drilled and require limited additional capital expenditures.
EXCO Resources Company Profile
EXCO Resources, Inc. (EXCO) is an oil and natural gas company. The Company is engaged in the exploration, exploitation, acquisition, development and production of onshore United States oil and natural gas properties with a focus on shale resource plays. The Company’s principal operations are conducted in certain United States oil and natural gas areas, including Texas, Louisiana and the Appalachia region. The Company holds acreage positions in approximately three shale plays in the United States, including East Texas and North Louisiana, South Texas and Appalachia. In East Texas and North Louisiana, the Company holds approximately 83,800 net acres in the Haynesville and Bossier shales. In South Texas, it holds approximately 65,800 net acres in the Eagle Ford shale. In Appalachia, the Company holds approximately 137,400 net acres prospective in the Marcellus shale.
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