Kimbell Royalty (KRP) & The Competition Critical Review

Kimbell Royalty (NYSE:KRP) is one of 1,051 public companies in the “Oil, Gas & Consumable Fuels” industry, but how does it contrast to its rivals? We will compare Kimbell Royalty to similar businesses based on the strength of its profitability, risk, valuation, analyst recommendations, dividends, earnings and institutional ownership.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Kimbell Royalty and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kimbell Royalty	0	1	4	1	3.00
Kimbell Royalty Competitors	5994	27031	40907	2431	2.52

Kimbell Royalty presently has a consensus price target of $18.25, indicating a potential upside of 20.14%. As a group, “Oil, Gas & Consumable Fuels” companies have a potential upside of 27.38%. Given Kimbell Royalty’s rivals higher possible upside, analysts clearly believe Kimbell Royalty has less favorable growth aspects than its rivals.

Institutional & Insider Ownership

25.8% of Kimbell Royalty shares are held by institutional investors. Comparatively, 30.7% of shares of all “Oil, Gas & Consumable Fuels” companies are held by institutional investors. 5.6% of Kimbell Royalty shares are held by company insiders. Comparatively, 15.5% of shares of all “Oil, Gas & Consumable Fuels” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Risk & Volatility

Kimbell Royalty has a beta of 0.38, indicating that its stock price is 62% less volatile than the S&P 500. Comparatively, Kimbell Royalty’s rivals have a beta of -3.79, indicating that their average stock price is 479% less volatile than the S&P 500.

Profitability

This table compares Kimbell Royalty and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kimbell Royalty	25.39%	13.37%	6.70%
Kimbell Royalty Competitors	-455.74%	19.71%	6.77%

Dividends

Kimbell Royalty pays an annual dividend of $1.80 per share and has a dividend yield of 11.8%. Kimbell Royalty pays out 233.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Oil, Gas & Consumable Fuels” companies pay a dividend yield of 9.1% and pay out -135.5% of their earnings in the form of a dividend.

Valuation and Earnings

This table compares Kimbell Royalty and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Kimbell Royalty	$367.14 million	$90.95 million	19.73
Kimbell Royalty Competitors	$14.85 billion	$5.51 billion	-1.09

Kimbell Royalty’s rivals have higher revenue and earnings than Kimbell Royalty. Kimbell Royalty is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Summary

Kimbell Royalty rivals beat Kimbell Royalty on 8 of the 15 factors compared.

Kimbell Royalty Company Profile

Kimbell Royalty Partners, LP is a Fort Worth-based company that owns oil and natural gas mineral and royalty interests. It leases these interests to exploration and production companies and receives royalties when oil or natural gas is produced. The company’s portfolio spans producing areas across the United States, including major basins such as the Permian, Eagle Ford, Bakken, and Appalachian regions. Kimbell generally does not drill wells or operate production facilities itself; its revenue is tied to activity by the operators working on its properties.