Head-To-Head Comparison: BW LPG (NYSE:BWLP) vs. Kimbell Royalty (NYSE:KRP)

Kimbell Royalty (NYSE:KRP) and BW LPG (NYSE:BWLP) are both energy companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, earnings, dividends, risk, analyst recommendations and institutional ownership.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Kimbell Royalty and BW LPG, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kimbell Royalty	0	1	4	1	3.00
BW LPG	0	1	4	0	2.80

Kimbell Royalty presently has a consensus target price of $18.25, suggesting a potential upside of 21.29%. Given Kimbell Royalty’s stronger consensus rating and higher possible upside, equities analysts clearly believe Kimbell Royalty is more favorable than BW LPG.

Valuation and Earnings

This table compares Kimbell Royalty and BW LPG”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kimbell Royalty	$333.83 million	5.17	$90.95 million	$0.77	19.54
BW LPG	$3.53 billion	0.95	$242.31 million	$2.94	7.55

BW LPG has higher revenue and earnings than Kimbell Royalty. BW LPG is trading at a lower price-to-earnings ratio than Kimbell Royalty, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Kimbell Royalty and BW LPG’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kimbell Royalty	25.39%	14.25%	7.05%
BW LPG	12.64%	22.48%	13.50%

Volatility and Risk

Kimbell Royalty has a beta of 0.38, suggesting that its stock price is 62% less volatile than the S&P 500. Comparatively, BW LPG has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500.

Dividends

Kimbell Royalty pays an annual dividend of $1.88 per share and has a dividend yield of 12.5%. BW LPG pays an annual dividend of $3.80 per share and has a dividend yield of 17.1%. Kimbell Royalty pays out 244.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. BW LPG pays out 129.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. BW LPG is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

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

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 BW LPG

BW LPG Limited, an investment holding company, engages in ship owning and chartering activities worldwide. The company operates through Shipping and Product Services segments. The company involved in the transportation of liquefied petroleum gas to oil companies, and trading and utility companies. It also offers integrated liquified petroleum gas (LPG) delivery services and support; wholesale and trade of LPG; and management services. It owns and operates LPG vessels and a fleet of very large gas carriers. The company was formerly known as BW Gas LPG Holding Limited and changed its name to BW LPG Limited in September 2013. BW LPG Limited was founded in 1935 and is headquartered in Singapore.