Contrasting Pacific Coast Oil Trust (OTCMKTS:ROYTL) and Kimbell Royalty (NYSE:KRP)

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

Risk and Volatility

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

Profitability

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

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

Institutional & Insider Ownership

25.8% of Kimbell Royalty shares are held by institutional investors. 5.6% of Kimbell Royalty shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kimbell Royalty	$309.31 million	4.19	$12.32 million	($0.07)	-171.79
Pacific Coast Oil Trust	N/A	N/A	N/A	N/A	N/A

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

Analyst Ratings

This is a summary of current recommendations and price targets for Kimbell Royalty and Pacific Coast Oil Trust, as reported by MarketBeat.

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

Kimbell Royalty currently has a consensus target price of $17.40, indicating a potential upside of 44.70%. Given Kimbell Royalty’s stronger consensus rating and higher possible upside, analysts plainly believe Kimbell Royalty is more favorable than Pacific Coast Oil Trust.

Summary

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

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.

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.