Kimbell Royalty (NYSE: KRP) and Petroleo Brasileiro SA Petrobras (NYSE:PBR.A) are both oils/energy companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, risk, institutional ownership, valuation, dividends and profitability.
This is a breakdown of recent recommendations for Kimbell Royalty and Petroleo Brasileiro SA Petrobras, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Petroleo Brasileiro SA Petrobras||0||1||0||0||2.00|
Kimbell Royalty currently has a consensus target price of $21.33, indicating a potential upside of 31.28%. Petroleo Brasileiro SA Petrobras has a consensus target price of $10.00, indicating a potential upside of 1.73%. Given Kimbell Royalty’s stronger consensus rating and higher probable upside, equities analysts clearly believe Kimbell Royalty is more favorable than Petroleo Brasileiro SA Petrobras.
This table compares Kimbell Royalty and Petroleo Brasileiro SA Petrobras’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Petroleo Brasileiro SA Petrobras||2.71%||4.27%||1.38%|
Earnings and Valuation
This table compares Kimbell Royalty and Petroleo Brasileiro SA Petrobras’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Petroleo Brasileiro SA Petrobras||$81.41 billion||0.79||-$4.84 billion||($0.47)||-20.91|
Kimbell Royalty has higher earnings, but lower revenue than Petroleo Brasileiro SA Petrobras.
Kimbell Royalty pays an annual dividend of $1.24 per share and has a dividend yield of 7.6%. Petroleo Brasileiro SA Petrobras does not pay a dividend.
Institutional & Insider Ownership
21.8% of Kimbell Royalty shares are owned by institutional investors. Comparatively, 4.4% of Petroleo Brasileiro SA Petrobras shares are owned by institutional investors. 1.0% of Petroleo Brasileiro SA Petrobras shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Kimbell Royalty beats Petroleo Brasileiro SA Petrobras on 8 of the 12 factors compared between the two stocks.
About Kimbell Royalty
Kimbell Royalty Partners, LP owns and acquires mineral and royalty interests in oil and natural gas properties throughout the United States. As of December 31, 2015, the Company owned mineral and royalty interests in approximately 3.7 million gross acres and overriding royalty interests in approximately 0.9 million gross acres, with approximately 44% of its acres located in the Permian Basin. As of December 31, 2015, the Company’s mineral and royalty interests were located in 20 states and in every onshore basin across the continental United States, and included ownership in over 48,000 gross producing wells, including over 29,000 wells in the Permian Basin. The Company’s properties include Permian Basin, Mid-Continent, Terryville/Cotton Valley/Haynesville, Eagle Ford, Barnett Shale/Fort Worth Basin, Bakken/Williston Basin, San Juan Basin, Onshore California, DJ Basin/Rockies/Niobrara, Illinois Basin and others.
About Petroleo Brasileiro SA Petrobras
Petroleo Brasileiro S.A.-Petrobras specializes in the oil, natural gas and energy industry. The Company is engaged in prospecting, drilling, refining, processing, trading and transporting crude oil from producing onshore and offshore oil fields and from shale or other rocks. Its segments include Exploration and Production, which covers the activities of exploration, development and production of crude oil, natural gas liquid and natural gas; Refining, Transportation and Marketing, which covers the refining, logistics, transport and trading of crude oil and oil products activities, exporting of ethanol, and extraction and processing of shale; Gas and Power, which is engaged in transportation and trading of natural gas produced in Brazil and imported natural gas; Biofuels, which covers the activities of production of biodiesel and its co-products, and ethanol-related activities; Distribution, which includes the activities of its subsidiary Petrobras Distribuidora S.A., and Corporate.
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